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Carbon Tax Competitiveness Concerns: Assessing a Best Practives Carbon Credit
National Tax Journal (2017)
  • Wayne B Gray, Clark University
  • Gilbert E. Metcalf
This paper considers how industry focused revenue rebating could be used to address competitiveness concerns arising from a unilaterally imposed carbon tax. It focuses on the use of output-based carbon credits tied to best practices in the sector and considers its efficiency and administrative characteristics. It also investigates whether firms have sufficient tax appetite to use such a credit. Such a credit for firms in energy intensive, trade exposed (EITE) sectors could provide compensation for firms and mitigate to some extent competitiveness issues. Some firms, however, would not be able to utilize all of their carbon credits due to insufficient tax appetite.
  • carbon tax,
  • tax reform,
  • trade competitiveness,
  • leakage
Publication Date
June, 2017
Citation Information
Wayne B Gray and Gilbert E. Metcalf. "Carbon Tax Competitiveness Concerns: Assessing a Best Practives Carbon Credit" National Tax Journal Vol. 70 Iss. 2 (2017) p. 447 - 468
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