Description:
The basic insight behind carbon pricing is not new, and is based in mainstream economic theory. If market interactions are leading to the overuse of resources outside of the market, imposing a price on the overused resource will bring it into the market and increase efficiency. Currently, the negative impacts associated with the release of carbon through fossil fuel combustion is not incorporated into the market. By imposing a price on carbon, fossil fuel consumers are incentivized to reduce their fuel usage. This reduction in fuel demand is not necessarily associated with lower economic output. In fact, depending on the use of the revenue, a carbon tax might lead to net increases in employment and output. Because of Oregon’s constitutional requirements related to transportation fuel tax revenues, a tax on carbon would significantly increase highway funding in the state. This increase in funding would akin to a public stimulus project which would reach every region in Oregon.
Subject:
Carbon taxes
Infrastructure (Economics)
Economic conditions
United States -- Carbon taxes -- Econometric models
Roads -- Finance
Economic Policy
Environmental Policy
Growth and Development
Infrastructure
Transportation
Urban Studies
Raw Url:
http://pdxscholar.library.pdx.edu/do/oai/?metadataPrefix=&verb=GetRecord&identifier=oai:pdxscholar.library.pdx.edu:nerc_pub-1007
Source:
Northwest Economic Research Center Publications and Reports
Repository Record Id:
oai:pdxscholar.library.pdx.edu:nerc_pub-1007
Record Title:
Oregon Highway Cost Allocation Study: Carbon Tax Issue Paper
https://pdxscholar.library.pdx.edu/nerc_pub/8
https://pdxscholar.library.pdx.edu/context/nerc_pub/article/1007/viewcontent/Carbon_tax_issue_paper_final_3_13.pdf