Measuring the Macroeconomic Impact of Carbon Taxes
By Gilbert E. Metcalf, James H. Stock. 2020
179 citations recorded by the source corpus.
Policymakers often express concern about the impact of carbon taxes on employment or GDP. Using a new dataset on carbon tax rates, we estimate the macroeconomic impacts of these taxes on GDP and employment growth rates for various specifications and samples. Our point estimates suggest a zero to modest positive impact on GDP and total employment growth rates. More importantly, we find no robust evidence of a negative effect of the tax on employment or GDP growth. For the European experience at least, we find no support for the view that carbon taxes are job or growth killers.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/308f38799b73ab9f554f53c137258eceb2cb04e1
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In Economics and Econometrics
In Renewable Energy, Sustainability and the Environment
Citations in the corpus
- Does a Carbon Tax Reduce CO2 Emissions? Evidence from British Columbia (2019, background): “7 Recent work by Metcalf and Stock (2020) shows little evidence of carbon taxes on GDP, thus supporting the inclusion of GDP as a control variable that itself is unaffected by the introduction of carbon taxes.”
- The Macroeconomic Impact of Europe’s Carbon Taxes (2020, unknown): “…employment; fleshes out dynamic responses; allows for possible non-linear responses; examines how the response is affected by the use of the revenues, the magnitude of the tax rate, and the fraction of covered emissions; and tests and rejects one of the specifications in Metcalf and Stock (2020).”