Carbon Taxes

1.  What action has Exxon taken to promote a carbon tax?

• Exxon has endorsed the Climate Leadership Council's carbon tax proposal and is putting up $1 million to lobby for it.

2.  How does this article define a carbon tax?

• A per-ton tax on the carbon dioxide emissions embedded in fuels or other products.

3.  What would be the predicted impact of a $50 per ton carbon tax?

• Emissions would fall 39 to 46 percent below 2005 levels by 2025, which is much ahead of the Paris goal.

4.  How expensive would the tax need to be to reduce emissions by 80%?

• It would have to exceed $100 per ton.

5.  Which industry would be most impacted by the implementation of a carbon tax?

• Electricity

6. How would the carbon tax impact the transportation industry?

• A $50 carbon tax would reduce emissions from the transportation industry just 2 percent, because there aren't really liquid fuel alternatives, and the only way to reduce emissions would be to drive less.

7. Why is the carbon tax likely to be a regressive tax?

• It is regressive because it hits the poor harder than the rich because the poor spend a larger percentage of their income on energy services.