DIC Members Forum

 

 

What do you think?

Share your thoughts on the pressing public policy issues of the day.

Welcome to the Forum

This is an exclusive space for members of the Dean's International Council to engage in constructive, serious, and thought-provoking debates on the pressing public policy issues of the day. Each month, we'll offer a new topic for discussion. We look forward to your participation.

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May 2013


Would the U.S. be well-served by implementing a carbon tax policy,
similar to Ireland's?

 

Colm O'Muircheartaigh
Dean, Chicago Harris

Three years ago, in an effort to reduce its deficit and bring its economy back from the brink, Ireland implemented a carbon tax policy. Private citizens and businesses pay taxes on most fossil fuels and for non-recyclable waste. The carbon tax has spurred significant emissions reductions, raised nearly one billion euros since it was implemented, and earned the support of Ireland's major political parties. At the same time, gas and home heating oil prices have increased as much as 10 percent, which critics of the policy say hurts low-income families and industry.

Reports show that if a similar policy were implemented in the United States it could generate about $1.25 trillion in revenue over the next decade. However, as the New York Times article points out, carbon taxes are "politically toxic" in the United States. As such, the prospect of implementing even a modest carbon tax policy is unrealistic.

So, would the United States benefit from a carbon tax policy similar to that in place in Ireland? If so, what must be done to increase its political feasability?

Additional Information on Ireland's Carbon Tax Policy:

"Carbon Taxes Make Ireland Even Greener" - New York Times

"Budget 2013: Three Cheers for the Carbon Tax" - Irish Fiscal Policy Research Centre

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