The Green Dividend Dilemma: Carbon Dividends Versus Double-Dividends
Abstract: By raising the price of carbon-emitting energy sources, a carbon tax would flexibly incentivize households and businesses to reduce fossil fuel consumption and substitute towards cleaner energy sources. A carbon tax would also generate a substantial stream of government revenue. This raises an important question – how should this revenue be used? In this note, we summarize findings from our recent research (Fried et al. (2018)) that examine this question.
File(s): File format is text/html https://www.federalreserve.gov/econres/notes/feds-notes/green-dividend-dilemma-carbon-dividends-versus-double-dividends-20190308.htm
Part of Series: FEDS Notes
Publication Date: 2019-03-08