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Board of Governors of the Federal Reserve System (U.S.)
FEDS Notes
The Green Dividend Dilemma: Carbon Dividends Versus Double-Dividends
Stephie Fried
Kevin Novan
William B. Peterman
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.


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Stephie Fried & Kevin Novan & William B. Peterman, The Green Dividend Dilemma: Carbon Dividends Versus Double-Dividends, Board of Governors of the Federal Reserve System (U.S.), FEDS Notes 2019-03-08, 08 Mar 2019.
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DOI: 10.17016/2380-7172.2340
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