Leaders of major global institutions such as the World Bank and the International Monetary Fund have been pressing governments to charge polluters for emitting carbon dioxide. While there is scientific consensus regarding the effects of carbon pollution on climate change, World Bank President Jim Yong Kim notes in the New York Times, “to our economists, who have been studying this for quite some time, there is an equally obvious consensus that putting a price on carbon pollution is by far the most powerful and efficient way to reduce emissions.”
Research by RFF experts supports the widely held view of economists that a carbon tax is the most efficient approach to limiting carbon emissions. RFF modeling highlighted in the Wall Street Journal (subscription required) shows that a $45-per-ton tax on carbon dioxide, spread over 14 years, would be “almost unnoticeable.” That being said, determining how to reach President Obama’s 80 percent reduction goal by 2050 is much harder due to unpredictable factors, such as advances in technology. RFF’s Ray Kopp notes, “We normally stop at 2030 or 2035 because it really gets so speculative.”
RFF on the Issues connects today’s pressing news with related research and expertise at RFF.
