| Autor: |
Stephie Fried, Kevin Novan, William Peterman |
| Rok vydání: |
2021 |
| Předmět: |
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| Zdroj: |
Finance and Economics Discussion Series. 2021:1-30 |
| ISSN: |
1936-2854 |
| DOI: |
10.17016/feds.2021.023 |
| Popis: |
This paper explores how to recycle carbon tax revenue back to households to maximize welfare. Using a general equilibrium lifecycle model calibrated to reflect the heterogeneity in the U.S. economy, we find the optimal policy uses two thirds of carbon-tax revenue to reduce the distortionary tax on capital income while the remaining one third is used to increase the progressivity of the labor-income tax. The optimal policy attains higher welfare and more equality than the lump-sum rebate approach preferred by policymakers as well as the approach originally prescribed by economists--which called exclusively for reductions in distortionary taxes. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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