An economy-wide price on carbon is an important centerpiece of an economically efficient strategy for addressing climate change and reducing GHGs. But implementing a carbon price is not the only change necessary to get from today’s policies to that efficient strategy. Some existing policies targeting GHG emissions should be suspended or modified after a sufficiently high carbon price is in place.
Williams proposes to implement a carbon tax, followed by suspension or modification of current climate policies that are unnecessary or inefficient after a sufficiently high carbon price is implemented.
The author did not receive any financial support from any non-Brookings firm or person for this report and no outside party had the right to review this article before publication.