ABSTRACT
This conclusion presents some closing thoughts on the concepts discussed in this book. The book shows how, by laying out sound design principles, opportunities for broader fiscal and regulatory reforms, and feasible solutions to specific implementation challenges. Indeed, a carbon tax could provide opportunities for eventually scaling back a range of climate-related, federal and state-level regulations, and suspending upcoming initiatives at US Environmental Protection Agency under the auspices of the Clean Air Act, efforts that become unnecessary in the presence of a sufficient carbon price. Aligning the carbon price appropriately also provides an automatic balance between environmental benefits and economic costs. In short, a carbon tax could be a central component of a broad policy package that replaces less efficient regulations, eliminates tax loopholes, and reduces the federal budget deficit. Negotiations around carbon pricing could add a useful economic dimension to climate talks, by building on other multilateral economic fora on issues such as international tax, finance, and trade policies.
