Issue Area

Carbon Pricing

Overview

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 and create good jobs in the process. Carbon pricing forces emitters to pay for their pollution, and the funds can be directed towards social and environmental programs.

NCEL Point of Contact
Clara Summers

Climate and Energy Manager

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Key Facts

Currently, polluters pollute for free, while the public pays with negative impacts on health, environment, and the climate. Putting a price on carbon shifts those costs back onto industry emitters.

The funds generated from carbon pricing can be directed towards the public good by funding climate mitigation or adaptation projects and investing in good-quality clean energy jobs.

Businesses agree that putting a price on carbon would bring predictability to energy prices, provide long-term savings, and reduce the economic costs of climate change.

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Resources

NCEL Resources

Online Resources

Resources for the Future Carbon Pricing 101

Carbon Pricing 101: An introduction to carbon pricing, the benefits and design of pricing policies, and applications around the globe.

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Brookings Report

State Level Carbon Taxes: Options and Opportunities for Policymakers

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State Innovation Exchange Legislator Toolkit

This legislator toolkit provides guidance on how to support disadvantaged communities and displaced workers through a carbon pricing plan.

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Union of Concerned Scientists Primer

Carbon Pricing 101: When carbon emissions cost money, we produce less of them.

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