NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

The Incidence of a U.S. Carbon Tax: A Lifetime and Regional Analysis

Kevin A. Hassett, Aparna Mathur, Gilbert E. Metcalf

NBER Working Paper No. 13554
Issued in October 2007
NBER Program(s):   EEE   PE

This paper measures the direct and indirect incidence of a carbon tax using current income and two measures of lifetime income to rank households. Our results suggest that carbon taxes are more regressive when annual income is used as a measure of economic welfare than when proxies for lifetime income are used.

Further, the direct component of the tax, in any given year, is significantly more regressive than the indirect component. In fact, for 1987, the indirect component of the tax is mildly progressive. We observe a modest shift over time with the direct component of carbon taxes becoming less regressive and the indirect component becoming more regressive. These effects mostly offset each other and the distribution of the total tax burden has not changed much over time.

In addition we find that regional variation has fluctuated over the years of our anlaysis. By 2003 there is little systematic variation in carbon tax burdens across regions of the country.

download in pdf format
   (141 K)

email paper

This paper is available as PDF (141 K) or via email.

This paper was revised on November 28, 2007

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w13554

Published: Kevin A. Hassett & Aparna Mathur & Gilbert E. Metcalf, 2009. "The Incidence of a U.S. Carbon Tax: A Lifetime and Regional Analysis," The Energy Journal, International Association for Energy Economics, vol. 30(2), pages 155-178. citation courtesy of

Users who downloaded this paper also downloaded these:
Goulder Carbon Tax Design and U.S. Industry Performance
Metcalf w14375 Designing A Carbon Tax to Reduce U.S. Greenhouse Gas Emissions
Grainger and Kolstad w15239 Who Pays a Price on Carbon?
Poterba w3649 Tax Policy to Combat Global Warming: On Designing a Carbon Tax
Metcalf, Mathur, and Hassett w16101 Distributional Impacts in a Comprehensive Climate Policy Package
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us