How are carbon-dioxide emissions affected by tax or allowance prices on them? A recent Congressional Budget Office (CBO) paper examines this question. It scrutinizes three groups: the electrical power industry, the transportation sector and a composite residential, commercial and industrial group. In the electrical power industry, “price sensitivities of energy-related emissions over the first 10 years of a potential tax policy are about three times larger” now than in 2010. But in the transportation and composite sectors, they’re about 25% smaller. The total for all three groups is approximately twice as large as previously estimated. To view the working paper: https://bit.ly/3pOK86f
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