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Effects of carbon tax on emissions and revenue
Annual gross revenue
Cumulative resultsSelect a tax and growth rate to see cumulative results
XX.X billion metric tons
10-year gross revenue,
$X,XXX billion ($2018)
Icons from the Noun Project. Emissions created by Francesca Ameglio; revenue by Agniraj Chatterj (CC BY 3.0 US).
This interactive shows how much revenue different levels of carbon taxes would produce and how much greenhouse gas emissions they would save over time. It is based on “a large-scale, computable general equilibrium (CGE) model of the US economy.” For more information on the model itself, please see the blog post introducing the calculator by Marc Hafstead at Resources for the Future.
The calculator shows the effects of carbon taxes ranging from $5 to $50 per metric ton of CO₂ at annual growth rates ranging from zero to five percent above inflation. It has two sources of data: the projected revenue and the projected emissions reduction from each combination of base tax rate and percentage increase. The selected values are shown against a baseline of there being no carbon tax. Other values are calculated by the tool: cumulative emissions savings from 2018 to 2030, 10-year gross revenue (2018–2027), and comparison of annual emission to 1995 levels.