|Present||Center for Business and Public Policy (CBPP), University of Illinois at Urbana-Champaign|
|Present||Gutgsell Professor of Finance, University of Illinois at Urbana-Champaign|
|Present||Institute of Government and Public Affairs (IGPA), University of Illinois at Urbana-Champaign|
environmental and energy economics and policy analysis, public economics and taxation, and distributional effects of taxes, social security, & regulations
Honors and Awards
- AERE Fellow, 2014, Award of the Association of Environmental and Resource Economists
- List of Teachers Ranked as Excellent by their Students, UIUC, 2008, 2009, 2010, 2011, 2013, 2016
- Meritorious Service Award, U.S. Treasury Department, 1987
- First Prize, Outstanding Doctoral Dissertation Award, National Tax Association, 1979
Finance Department and IGPA
University of Illinois
4030 BIF Box#30 (MC520)
515 East Gregory Drive
Champaign, IL 61820
office: (217) 244-3621
fax: (217) 244-3102
cell: (512) 750-6012
Vertical and Horizontal Redistributions from a Carbon Tax and Rebate Journal of the Association of Environmental and Resource Economists (2019)
Are carbon taxes regressive? To calculate effects of a carbon tax on each family’s expenditures, plus distributional effects of three revenue-recycling mechanisms, we employ the U.S. Treasury Distribution Model. It includes 322,000 tax returns, matched ...
Who Bears the Economic Costs of Environmental Regulations? forthcoming in the Review of Environmental Economics and Policy (2018)
Public economics has a well-developed literature on tax incidence – the ultimate burdens from tax policy. This literature is used here to describe not only the distributional effects of environmental taxes or subsidies but also ...
Costs of Energy Efficiency Mandates Can Reverse the Sign of Rebound Working Paper (2018)
Improvements in energy efficiency reduce the cost of consuming services from household cars and appliances and can result in a positive rebound effect that offsets part of the direct energy savings. We use a general ...
Multiple Pollutants, Co-Benefits, and Suboptimal Environmental Policies Journal of Environmental Economics and Management (2018)
In our analytical general equilibrium model, polluting inputs can be substitutes or complements. We study a tax increase on one pollutant where the other faces a tax or permit policy. Our solutions highlight key parameters ...
Potential State-Level Carbon Revenue under the Clean Power Plan Contemporary Economic Policy (2018)
In 2015, the U.S. EPA issued the Clean Power Plan under which each state can set a mass-based target to meet its assigned electric power sector carbon dioxide emission reductions. If it proceeds, states can ...
Public Finance in a Nutshell: A Cobb Douglas Teaching Tool for General Equilibrium Tax Incidence and Excess Burden National Tax Journal (2017)
To help first- or second-year graduate students in economics apply their theoretical training, this paper shows how to solve a simple and intuitive computable general equilibrium (CGE) model using a calculator. Because this simplified Harberger ...
The Use of Economy-Wide Models in Evaluating the Social Costs, Benefits, and Economic Impacts of Air Regulations (2017)
The National Center for Environmental Economics (NCEE) in the EPA Office of Policy requested advice from the Science Advisory Board (SAB) on the use of economy-wide modeling (EWM) for assessing the benefits and costs of ...
A Model to Evaluate Vehicle Emission Incentive Policies in Japan Environmental Economics and Policy Studies (2015)
Using 3 years of data from the 47 prefectures of Japan, we estimate the behavior of households that simultaneously make discrete decisions about vehicle ownership and continuous decisions about driving distance. We use the estimated ...
Can a Unilateral Carbon Tax Reduce Emissions Elsewhere? Resource and Energy Economics (2014)
One country or sector that tries to reduce greenhouse gas emissions may fear that other countries or sectors will get a competitive advantage and increase emissions. Computable general equilibrium (CGE) models such as Elliott et ...
Negative Leakage Journal of the Association of Environmental and Resource Economists (2014)
Our analytical general equilibrium model solves for effects of a small increase in carbon tax on leakage – the increase in emissions elsewhere. Identical consumers buy two goods using income from endowments that are mobile ...
Social, Economic, and Ethical Concepts and Methods Climate Change Mitigation (2014)
This framing chapter describes the strengths and limitations of the most widely used concepts and methods in economics, ethics, and other social sciences that are relevant to climate change. It also provides a reference resource ...
Vehicle Choices, Miles Driven, and Pollution Policies Journal of Regulatory Economics (2013)
Mobile sources contribute large percentages of each pollutant, but technology is not yet available to measure and tax emissions from each vehicle. We build a behavioral model of household choices about vehicles and miles traveled. ...
Leakage, Welfare, and Cost-Effectiveness of Carbon Policy American Economic Review, Papers and Proceedings (2013)
We extend the model of Fullerton et al (2012) to explore cost-effectiveness of unilateral climate policy in the presence of leakage. We ignore the welfare gain from reducing greenhouse gas emissions and focus on the ...
Can Pollution Tax Rebates Protect Low-Wage Earners? Journal of Environmental Economics and Management (2013)
Pollution taxes are believed to burden low-income households that spend a greater than average share of income on pollution-intensive goods. Some proposals offset that effect by returning revenue to low-income workers via reduced labor tax. ...
Introduction Distributional Aspects of Energy and Climate Policies (2013)
We introduce and summarize the ten chapters of the 2013 book we edited called "Distributional Aspects of Energy and Climate Policies". In particular, the chapters examine policies that would “price” carbon emissions or otherwise seek ...
Does the Indexing of Government Transfers Make Carbon Pricing Progressive? American Journal of Agricultural Economics (2012)
We analyze both the uses side and the sources side incidence of domestic climate policy using an analytical general equilibrium model, taking into account the degree of government program indexing. When transfer programs such as ...
Introduction and Summary The Design and Implementation of U.S. Climate Policy (2012)
While economic models have already proven useful to analyze big picture questions about climate policy such as the choice between a carbon tax or cap-and-trade permit system, the 19 chapters in this book show how ...
Optimal Taxation of Externalities Interacting Through Markets: A Theoretical General Equilibrium Analysis Resource and Energy Economics (2011)
This study develops a theoretical general equilibrium model to examine optimal externality tax policy in the presence of externalities linked to one another through markets rather than technical production relationships. Analytical results reveal that the ...
Six Distributional Effects of Environmental Policy Risk Analysis (2011)
While prior literature has identified various effects of environmental policy, this note uses the example of a proposed carbon permit system to illustrate and discuss six different types of distributional effects: (1) higher prices of ...
The Progressivity of Social Security The B.E. Journal of Economic Analysis & Policy (2011)
How much does the current social security system redistribute from rich to poor? We propose alternative concepts of well-being that can be used to classify individuals from rich to poor, and we show how social ...
Analytical General Equilibrium Effects of Energy Policy on Output and Factor Prices B. E. Journal of Economic Analysis & Policy (2010)
Using an analytical general equilibrium model, we find solutions for the effect of energy policy on factor prices as well as output prices. We calibrate the model to the U.S. economy, and we consider a ...
Combinations of Instruments to Achieve Low-Carbon Vehicle-Miles Stimulating Low-Carbon Vehicle Technologies (2010)
In cases where the first-best carbon tax and a reasonable second-best gasoline tax are unavailable, this paper demonstrates how alternative combinations of instruments can form economically-sound, environmentally-motivated policies for substantial reductions in vehicle carbon emissions. ...