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How EPA could push a carbon tax

It could happen.

This article was published in Scientific American’s former blog network and reflects the views of the author, not necessarily those of Scientific American


Carbon tax has been popping back up on the radar this week. First, the Congressional Budget Office included a carbon tax in a myriad of ideas to reduce the federal deficit. There are a bunch of energy-related measures in there but the one that stands out to me is the carbon tax. According to the CBO's estimates a tax on greenhouse gas emissions would reduce the deficit by $1.06 trillion over the next ten years.

Trillion!

Now, Brad Plumer at The Washington Post asks the trillion dollar question: "Could the EPA push a carbon tax on its own?"


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The answer is: maybe.

Basically, EPA has authority to set federal guidelines for carbon emissions from existing power plants and states can meet these in a bunch of different ways. A state-specific carbon tax could be one of the approved methods for complying with EPA's rules.

Or states could implement a cap & trade scheme a la California/RGGI/Quebec.

Either will likely be more economically efficient than say hard limits on GHGs per kWh, and in the end, a carbon tax or trading scheme should result in the same outcome. How you get there is a matter of what your priorities are. Do you care more about the price of the externality? Then you set a dollar amount (tax). Do you care more about the amount of emissions? Then you set a cap and let people figure out the best way to meet it.

I probably wouldn't hold my breath for a carbon tax, but it is at least a possibility. Of course, a nationwide carbon tax would just be simpler to implement than separate state programs, but alas.

David Wogan is an engineer and policy researcher who writes about energy, technology, and policy.

David's academic and professional background includes a unique blend of technology and policy in the field of energy systems. Most recently, David worked at Austin Energy, a Texas municipal utility, implementing a Department of Energy stimulus grant related to energy efficiency. Previously, David was a member of the Energy & Climate Change team at the White House Council on Environmental Quality for the Obama Administration.

David holds two Master's degrees from The University of Texas at Austin in Mechanical Engineering and Public Affairs. While at UT, David was a researcher in the Webber Energy Group, where his research focused on advanced biofuel production to offset petroleum use in the transportation sector. David holds a Bachelor's of Science degree in Mechanical Engineering from The University of Texas at Austin, where he researched nuclear non-proliferation measurement technology.

David is a 2013 Aspen Institute Journalism Scholar, joining a select group of journalists from Slate, ABC News, and The New York Times.

David lives in Austin, Texas. Follow along on Twitter or email him at david.wogan@me.com.

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