A carbon tax would be good for the California economy. That’s the finding of a study by Regional Economic Models, Inc. commissioned by Citizens Climate Lobby.
How can that be?
Many people think of taxes as a drain on wealth. But taxes create the infrastructure our economy (and our democracy) rely on. Without the roads, services, medical and scientific research, and security that our taxes buy, our economy wouldn’t function.
A carbon tax amplifies the infrastructure effect by spurring new investment in it. On top of that, it drives innovation. From the other side, it decreases the economic drag caused by pollution, like excessive health problems.
Here’s a good article on REMI’s report from Climate Progress. REMI is expected to report on the effects of a national carbon tax in May.