Carbon taxes, Infrastructure (Economics), Economic conditions, United States -- Carbon taxes -- Econometric models, Roads -- Finance
The basic insight behind carbon pricing is not new, and is based in mainstream economic theory. If market interactions are leading to the overuse of resources outside of the market, imposing a price on the overused resource will bring it into the market and increase efficiency. Currently, the negative impacts associated with the release of carbon through fossil fuel combustion is not incorporated into the market. By imposing a price on carbon, fossil fuel consumers are incentivized to reduce their fuel usage. This reduction in fuel demand is not necessarily associated with lower economic output. In fact, depending on the use of the revenue, a carbon tax might lead to net increases in employment and output. Because of Oregon’s constitutional requirements related to transportation fuel tax revenues, a tax on carbon would significantly increase highway funding in the state. This increase in funding would akin to a public stimulus project which would reach every region in Oregon.
Portland State University. College of Urban and Public Affairs. Northwest Economic Research Center
Portland State University. College of Urban and Public Affairs. Northwest Economic Research Center, "Oregon Highway Cost Allocation Study: Carbon Tax Issue Paper" (2015). Northwest Economic Research Center Publications and Reports. 8.