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States play an important role in formulating policies to
reduce greenhouse gas emissions. State emissions of carbon
dioxide, the most important greenhouse gas, are significant
on a global scale – many states individually emit
more carbon than some industrialized countries. The major
man-made source of carbon dioxide is the combustion of fossil
fuels; also a leading cause of urban smog and acid rain.
Carbon taxes are an attractive means of protecting the climate
by reducing carbon emissions while also raising revenues
for states facing difficult budget constraints.
By increasing fossil fuel prices, the tax encourages more
efficient use of energy and stimulates development of renewable
technologies. By changing relative prices, it encourages
a shift in consumption from coal and oil to cleaner-burning
natural gas and other environmentally friendly alternatives.
Below you will find information about states’ experiences
with carbon tax and tax shifting proposals.
California
The 1997
Global Climate Change Report: Greenhouse Gas Emissions Reductions
Strategies for California, a report by the California
Air Review Board, recommended that a carbon tax be imposed
on vehicular emissions in the state.
Maryland
In 2000, Maryland Governor Paris Glendenning issued an
executive
order establishing the Energy Task Force. This panel
was charged with examining methods for reducing energy-related
air and water pollution throughout the state and with submitting
a comprehensive package of energy alternatives to the governor.
A carbon tax is among the ideas being considered, along
with numerous other green taxes. A copy of the task force’s
report can be found by clicking
here.
Minnesota
In 1990, the Minnesota legislature requested a report from
the Pollution Control Agency (PCA) and the Department of
Natural Resources on carbon dioxide emissions in Minnesota
and incentives to reduce them. In 1991, the legislature
formally established a tree planting program, Minnesota
ReLeaf, and requested a further report from the PCA with
an implementation plan and recommendations for a fee structure.
The PCA recommended 54 cents per ton of carbon tax to generate
revenues for tree planting. In 1992, Senator Morse's bill
called for a $6 tax per ton of carbon emissions. In 1993,
a similar bill called for a $2 per ton tax on carbon, which
would have raised about $50 million statewide per year.
For further discussion of Minnesota green taxes see David
Morris, Green Taxes. Institute for Local Self-Reliance.
Minneapolis, MN. July 1994.
A bill to impose a $50 per ton carbon tax on energy producers
and consumers, with a corresponding reduction in income
and business taxes, was introduced in the 1997-1998 session
of the Minnesota state legislature. HF
1190 was scuttled by powerful energy interests in the
state despite numerous reports suggesting that the bill
would have economically benefited the large majority of
the state’s individuals and businesses.
Oregon
In 1999, the Oregon Environmental Council introduced a
bill to establish a tax shifting task force. HB
2473, sponsored by Representative Bill Witt (R-Beaverton),
would create an Environmental Tax Study Commission to develop
specific proposals for implementing green taxes in Oregon
over the next 10 years, including possibly a carbon tax.
Texas
HB
2479 was introduced in 1997. The bill imposed a pollution
tax on facilities in the state that emitted more than 1000
tons of one or more regulated pollutants, including CO2.
The tax was assessed at $100/ton. Revenues from the tax
were to be dedicated to the Texas public school system,
along with a corresponding reduction in local property taxes
that had been traditionally used to fund schools.
Vermont
In 1997, Vermont’s governor issued an Executive Order establishing
the Vermont Committee to Ensure Clean Air. The panel was
asked to submit a wide range of proposals to improve the
air quality in Vermont and reduce the total amount of pollution
being emitted within the state. A carbon tax was among the
options that the panel considered when it issued its Comprehensive
Energy Report in 1998. |
