The right climate for carbon taxes

The document proposes a U.S. carbon tax strategy designed to replace taxes on productive resources like capital and labor with pollution taxes. The authors suggest a framework that returns revenues to the economy through other tax reductions, provides compensation to affected households or regions, and prioritizes cost-effective emission reductions.

• The United States currently loses hundreds of billions of dollars annually by taxing economically productive resources, specifically capital and labor, whereas pollution taxes could provide an alternative revenue source that reduces both these losses and pollution.
• A proposed carbon tax strategy for the United States consists of three key elements: returning revenues to the economy via reductions in other taxes, compensating regions or households negatively impacted by energy tax payments, and ensuring carbon dioxide emissions are reduced at the lowest possible cost.

APA

World Resources Institute (n.d.). The right climate for carbon taxes. https://www.wri.org/research/right-climate-carbon-taxes

Chicago

World Resources Institute. The right climate for carbon taxes. n.d. https://www.wri.org/research/right-climate-carbon-taxes.

Wikipedia

{{cite report |author=World Resources Institute |title=The right climate for carbon taxes |url=https://www.wri.org/research/right-climate-carbon-taxes |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitutendright, author = {{World Resources Institute}}, title = {{The right climate for carbon taxes}}, institution = {World Resources Institute}, url = {https://www.wri.org/research/right-climate-carbon-taxes}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }