Economics
Carbon tax competitiveness concerns: Assessing a best practices carbon credit
Document Type
Article
Abstract
This paper considers how industry focused revenue rebating could be used to address competitiveness concerns arising from a unilaterally imposed carbon tax. It focuses on the use of output-based carbon credits tied to best practices in the sector and considers its efficiency and administrative characteristics. It also investigates whether firms have sufficient tax appetite to use such a credit. Such a credit for firms in energy intensive, trade exposed (EITE) sectors could provide compensation for firms and mitigate to some extent competitiveness issues. Some firms, however, would not be able to utilize all of their carbon credits due to insufficient tax appetite.
Publication Title
National Tax Journal
Publication Date
6-2017
Volume
70
Issue
2
First Page
447
Last Page
468
ISSN
0028-0283
DOI
10.17310/ntj.2017.2.08
Keywords
carbon tax, leakage, tax reform, trade competitiveness
Repository Citation
Gray, Wayne B. and Metcalf, Gilbert E., "Carbon tax competitiveness concerns: Assessing a best practices carbon credit" (2017). Economics. 112.
https://commons.clarku.edu/faculty_economics/112