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A Carbon Tax is Not Regressive
Tax Notes (2019)
  • Don Fullerton
  • Steven Sexton, Duke University
For “vertical” distributional effects between those with high- and low-incomes, the conventional view is that carbon policy is regressive (burdens that are a higher proportion of income for those with low income than for those with high income). Yet, new research disputes this conventional view of “vertical” effects, while bringing new attention to potential problems with “horizontal” distributional effects – those across families at the same level of income. This note introduces these new ideas and explains these new results.

[1] Julie-Anne Cronin, Don Fullerton, and Steven Sexton (2019), “Vertical and Horizontal Redistributions from a Carbon Tax and Rebate.”  Journal of the Association of Environmental and Resource Economists (forthcoming, March).
  • carbon tax,
  • progressivity,
  • distribution,
  • incidence
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Citation Information
Don Fullerton and Steven Sexton. "A Carbon Tax is Not Regressive" Tax Notes (2019)
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