Carbon tax ethics

Abstract

Ideal carbon tax policy is internationally coordinated, fully internalizes externalities, redistributes revenues to those harmed, and is politically acceptable, generating predictable market signals. Since nonideal circumstances rarely allow all these conditions to be met, moral issues arise. This paper surveys some of the work in moral philosophy responding to several of these issues. First, it discusses the moral drivers for estimates of the social cost of carbon. Second, it explains how national self‐interest can block climate action and suggests international policies—carbon border tax adjustments and carbon clubs—that can help address these concerns. Third, it introduces some of the social science literature about the political acceptability of carbon taxes before addressing a couple common public concerns about carbon taxes. Finally, it introduces four carbon revenue usage options, arguing that redistributive and climate compensation measures are most morally justified.This article is categorized under: Climate, Nature, and Ethics > Ethics and Climate Change Climate, Nature, and Ethics > Climate Change and Global Justice Climate and Development > Social Justice and the Politics of Development

Global Versus Regional Carbon Taxation: Exploring a Natural Experiment

“…While carbon taxation is praised for its potential, there is a literature addressing its challenges and criticisms (Mintz-Woo, 2024). Scholars such as Klenert et al (2020), Gokhale (2021), Jakob (2021) and Bertoldi (2022) investigate issues ranging from regressive impacts on vulnerable populations to concerns about competitiveness and carbon leakage.…”