Abstract:
This Article addresses both direct and indirect connections between
tax policy and carbon emissions. Any discussion of tax policy’s
impact on the environment must begin with a review of how the Code
can be used to encourage behavior. Accordingly, this Article begins
with a brief discussion of tax expenditures. The Article then reviews
tax policy recommendations in the following areas: (1) housing, (2)
transportation, (3) energy and conservation incentives, and (4) carbon
pricing, including carbon sequestration. For each area, I compare past
recommendations to actual changes in tax policy and make
predictions about coming changes to tax policy and how those
changes may affect carbon emissions.