Julie Anne Cronin
Department of the Treasury
Institutional Affiliation: U.S. Department of the Treasury
NBER Working Papers and Publications
|March 2017||Vertical and Horizontal Redistributions from a Carbon Tax and Rebate|
with Don Fullerton, Steven E. Sexton: w23250
Because electricity is a higher fraction of spending for those with low income, carbon taxes are believed to be regressive. Many argue, however, that their revenues can be used to offset the regressivity. We assess these claims by employing data on 322,000 families in the U.S. Treasury’s Distribution Model to study vertical redistributions between rich and poor, as well as horizontal redistributions among families with common incomes but heterogeneous energy intensity of consumption (different home heating and cooling demands). Accounting for the statutory indexing of transfers, and measuring impacts on annual consumption as a proxy for permanent income, we find that the carbon tax burden is progressive, rising across deciles as a fraction of consumption. The rebate of revenue via transfer...
Published: Julie Anne Cronin & Don Fullerton & Steven Sexton, 2019. "Vertical and Horizontal Redistributions from a Carbon Tax and Rebate," Journal of the Association of Environmental and Resource Economists, vol 6(S1), pages S169-S208.
|September 2016||Vertical and Horizontal Redistributions from a Carbon Tax and Rebate|
with Don Fullerton, Steven Sexton
in Energy Policy Tradeoffs between Economic Efficiency and Distributional Equity, Tatyana Deryugina, Don Fullerton, and Billy Pizer, organizers