The United States has yet to put an economy-wide price on carbon emissions, but momentum is building in the states to do just that. State legislators are working towards tackling the challenges of climate change by setting a price on carbon. These leaders are collaborating across state and party lines on mechanisms to not only reduce greenhouse gas emissions, but to improve public health, create jobs, and grow the economy in the process.
State Information Carbon Pricing policies are currently under consideration in several states
The Carbon Costs Coalition
State legislators from nine states who are dedicated to carbon pricing legislation have decided to come together formally as the Carbon Costs Coalition. This multi-state coalition is focused on reducing carbon emissions through putting a price on carbon. They are united through a common set of principles and hope that more legislators from other states will join the coalition.
“We could right the dysfunctional market and address climate change in a profound way. Now that would be good for business.”
“Carbon pricing makes sense, it is a simple mechanism that both businesses and consumers can understand.”
“While some debate the cost of a carbon tax, we should recognize that not pricing carbon also has a substantial price tag. For businesses, it’s easier to cope with a known fee or tax than it is to prepare for a massively uncertain future.”
“Our manufacturing has been affected directly by climate change with hurricanes and the California drought. The good news is that an approach like the carbon tax will make a big difference in reducing carbon—and stimulate the economy."
“We can harness the powers of the free markets while empowering individuals and businesses to reduce their carbon footprint.”
“We think it’s such a good idea that we’ve even instituted our own tax of $10 USD for every metric ton of our greenhouse gas emissions, from farm to landfill.”
"Businesses will benefit from putting a price on carbon as it will reduce the very real risks and economic disruptions associated with climate change."
Climate Action Business Association
The Business Case for a Carbon Tax
A REMI study concluded that a policy in Vermont would cut carbon emissions from heating and transportation by 31% while generating 2,400 new jobs, raising gross state domestic product by $100 million, and adding more than $150 million a year to real disposable personal income. Learn More
NCEL’s Carbon Pricing Fact Sheet outlines the different policy models and provides examples of current legislation Learn More
Resources for the Future comparison of six state carbon pricing proposals in 2016 Learn More
Carbon Tax Center recommended policy journals and papers on benefits of pricing carbon. Learn More
Carbon Tax Center brief on rational for and distributional impacts of a New York carbon tax. Learn More
Brookings Institution report on state policy options and opportunities for a carbon tax. Learn More
Massachusetts Department of Energy Resources analysis of a carbon fee or tax as a mechanisms to reduce GHG emissions Learn More
This website is intended to be a resource for leaders contemplating implementing a price on carbon in their states. If you know of additional resources or information to be included, please contact the NCEL staff.