Bovenberg and de Mooij (1994) showed that, in the presence of preexisting distorting taxes, the optimal pollution tax typically lies below social marginal damages. Many have viewed this result as a refutation of the so-called double dividend hypothesis,' which suggests that a tax on pollution...

This article describes a revenue and distributionally neutral approach to reducing U.S. greenhouse gas emissions that uses a carbon tax. The revenue from the carbon tax is used to finance an environmental earned income tax credit designed to be distributionally neutral. The credit is linked to...

This paper forms part of an OECD project which addresses the issue of the costs of reducing CO2 emissions by comparing the results from six global models of a set of standardised reduction scenarios. The Edmonds-Reilly Model was modified and run iteratively against several standardised scenarios...