Effect of US tax policy on greenhouse gas emissions

The National Academies has conducted a review of the Internal Revenue Code to identify which provisions have the largest effects on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects. The report, “Effect of US Tax Policy on Greenhouse Gas Emissions” finds that the tax system affects emissions primarily through changes in the prices of inputs and outputs of goods and services. Most of the tax provisions considered in the report relate directly to the production or consumption of different energy sources. The report examines both tax expenditures and excise taxes that could have a significant impact on GHG emissions.