We demonstrate that the carbon tax imposed by the Canadian province of British Columbia caused a decline in short-run gasoline demand that is significantly greater than would be expected from an equivalent increase in the market price of gasoline. That the carbon tax is more salient, or yields a...

There is a widespread perception that a carbon tax hits rural households disproportionally hard due to the greater dependence of these households on car travel and increased fuel needs for home heating. Yet remarkably little analysis of the regional welfare impacts of carbon taxation exists,...

Carbon taxes are viewed by most economists as a cost-effective approach to reducing greenhouse gas emissions. Concerns over adverse impacts to disposable income, and corresponding political acceptability, have led many to propose a "fee-and-dividend" approach, whereby revenue from carbon taxes...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies for emission-intensive and trade-exposed firms. We analyze the incentives created by novel forms of emissions intensity-based rebating (IBR) and contrast them with more common approaches like...

Carbon pricing policies worldwide are increasingly coupled with direct or indirect subsidies where emissions pricing revenues are rebated to the regulated entities. This paper analyzes the incentives created by two novel forms of rebating that reward additional emission intensity reductions: one...