On the Merits of a Carbon Tax

Testimony

On the Merits of a Carbon Tax

before the U.S. Senate Committee on Energy and Natural Resources
December 8, 2009

Abstract

Ted Gayer testified before the Senate Energy Committee that a carbon tax is the most economically efficient way to address climate change. While it might be politically unpopular, he says, it is well worth considering because it helps generate public revenues that can be used to offset economically harmful taxes, and it is less susceptible than cap-and-trade to economically disruptive price volatility.

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