"The Market Choice Act of 2019"
View on Niskanen Center websiteRFF Fellow and Director of the RFF Carbon Pricing Initiative Marc Hafstead was cited by the Niskanen Center in a bill summary for the Market Choice Act. Listed below is the full quote:
“The MCA carbon tax is expected to significantly reduce GHG emissions, but not enough to eliminate them as a source of revenue in the 10-year period after the tax is first imposed. As they are the largest emissions category covered by the tax, emissions from fossil fuel combustion are the most important to projections of revenue and environmental outcomes.
Using the Goulder-Hafstead E3 model, a computable general equilibrium model of the U.S. economy, analysts at Resources for the Future have projected how the tax swap proposed in the MCA would affect GHG emissions.[1] For a carbon tax starting at $35 per ton in 2021 and increasing 5 percent annually in real terms, the model projects that CO2 emissions from fossil fuel combustion will fall 42 percent from 2005 levels by 2030 (starting from 15 percent below 2005 levels in 2020).”
Read the full bill summary here.
