CBO Report Underscores Importance of Carbon Tax Option

CBO Report Underscores Importance of Carbon Tax Option

For Immediate Release

For more information contact:
Nick Berning, 202-222-0748

WASHINGTON, D.C.—Friends of the Earth President Brent Blackwelder responded to today’s Congressional Budget Office report finding that carbon taxes are the “most efficient” means of reducing global warming pollution with the following statement:

“Yet again, another group of experts has concluded that a corporate carbon tax is the most efficient way to reduce global warming pollution. This underscores the fact that a carbon tax is a serious policy option that should be considered alongside other ways of fighting global warming. A majority of Californians already support a corporate carbon tax, and with leadership from top elected officials, the majority of Americans might ultimately feel the same way—especially if revenue from such a tax were returned directly to middle class voters through tax rebates or other mechanisms.

“Today’s report also has implications for the current debate about cap-and-trade legislation in the U.S. Senate. Any cap-and-trade system should include 100 percent auctions of carbon allowances—making polluters pay for all pollution, as a carbon tax would do. As the CBO director has previously testified, ‘Giving the allowances away … would largely prevent the government from using the allowance value in ways that would lower the cap’s total cost to the economy.’ A cap-and-trade system with 100 percent auctions would be better for the economy and could yield financial benefits for low and middle income Americans.”