Assistant Professor Scott Ganz and AEI Resident Fellow Alex Brill recently co-authored an op-ed on Real Clear Policy that examines the economic incidence of a revenue neutral carbon tax across the roughly 3,000 counties in the United States. In their analysis, the revenue associated with a $25 per ton tax is redistributed via a decrease in taxes on wages. Brill and Ganz emphasize that the predicted disparity in economic outcomes that drives Republican opposition to a carbon tax is not supported by the data. Instead, Brill and Ganz project that most counties would experience a small net change in per capita income. Further, many Republican-leaning counties gain from the policy, particularly when the social cost of carbon emissions is taken into account. Coastal counties in the Southeast especially stand to benefit from the policy.

See Ganz’s on Real Clear Policy here:

https://www.realclearpolicy.com/articles/2018/01/29/the_partisan_divide_over_the_carbon_tax_is_all_smoke.html