ARTICLE SUMMARY

Article summary

Article summary

Introduction

The summary is of the article 'Gas tax proposal pick up steam' by Adam Doster.

Thesis statement

U.S. Congress is seriously considering a series of bills aimed at limiting the nation of gases (GHG) emissions.

Summary

Several of these proposals require a cap and trade system, while others propose an emissions paper complements the analysis tax. This Paltsev et al. (2007) of “bills cap and trade and it applies to missions MITE Prediction and Policy Analysis (EPPA) model to conduct an analysis of tax proposals. Several lessons emerge from this analysis” (Adam, 2010, 1). First, a low tax rate from combined with a low rate of growth in the tax rate will not significantly reduce emissions. Second, the costs of reductions of greenhouse gases are reduced with the inclusion of non-CO2 gases in the regime of carbon tax. The costs of the Larson plan, for example, fall by 20% with the inclusion of other greenhouse gases. Third, the social costs of policies can be affected by the growth rate of the tax, even after controlling for cumulative emissions. Fourth taxes, carbon - like any other form of carbon pricing - is regressive. However, general equilibrium considerations suggest that short-term regressive measure may be overstated. A portion of the carbon tax is passed back to workers, capital owners, and owners of resources. To the extent that relatively wealthy resource owners and equity have some fraction of the tax burden, the regressively will be reduced. Moreover, the regressively can be offset with a carefully designed rebate of some or all of the income. Finally, the bills carbon tax have been proposed or submitted are for the most part comparable to many of the proposed carbon cap and trade that have been suggested. Thus, the choice between a carbon tax and cap and trade ...