The drastic power of a modest carbon tax

Source: Kara Baskin, MIT Sloan School of Management, October 17, 2019

A recent study by an MIT Sloan professor finds that a federal carbon price of $7 per metric ton of carbon dioxide in 2020 could reduce emissions by the same amount as the flagship climate policies adopted by the Obama administration.

The study’s authors say that wouldn’t be enough to put the United States on a long-term path to decarbonation, but believe the results demonstrate the potential power of a carbon tax. Recent competing bills introduced in Congress, if passed and implemented, would launch a carbon tax starting at $15, $30, or $40 per metric ton of carbon dioxide…..