Estimated the macroeconomic impacts of carbon taxes on GDP and employment growth rates using 30 years of data on carbon taxation in various European countries. Found no evidence for a negative impact on employment or GDP growth but rather find a zero to modest positive impact. Found a cumulative emissions reduction on the order of 4 to 6 percent for a $40/ton CO2 tax covering 30% of emissions. Reductions would likely be greater for a broad-based U.S. carbon tax since European carbon taxes typically do not cover those sectors with the lowest marginal abatement costs.
Time Period(s): 1990 – 2018
Universe: GDP and Employment in EU countries
Unit(s) of Observation: country year observations
The following publications are supplemented by the data in this project.
