Carbon Tax with Reinvestment Trumps Cap-and-Trade

Part I of this paper reviews the current opinion surrounding carbon tax proposals as they appear in the literature. Part II will provide an overview of the current cap-and-trade proposals. Part III will introduce a carbon tax with reinvestment. Part IV of this article reviews the leading proposals arguing that a carbon tax is superior to cap-and-trade.

And finally, for Part V explains why a carbon tax with reinvestment trumps cap-and-trade.