Where we've been

There has been a history of pollution pricing in general, and cap and trade systems in general having a great amount of success in curtailing emissions. Below you will find some background on successful cap and trade for inspiration as well as some failed attempts in recent history to tax carbon emissions directly.

Cap and Trade Success

• Cap and trade systems have a long history in the US, starting with the "offset-mechanism" used in the Clean Air Act of 1977, and being launched in full as a part of the Acid Rain Program.
  • The emissions trading system for SO2 to reduce acid rain has been very successful. Emissions are expected to fall 50% from 1980 to 2010.

Unsuccessful Carbon Tax Proposals

• In 2005, New Zealand proposed a carbon tax of NZ$15 per metric ton of CO2. The planned tax was scheduled to take effect in April 2007 and applied across most economic sectors with an exemption for methane emissions from farming and special exemptions from carbon intensive businesses if they adopted best-practice standards. It was abandoned, however, in December 2005 when it was estimated that it would raise electric bills 6%.
• In 1993, Bill Clinton proposed a BTU tax that passed the House, but not the Senate.
• Rep. John D. Dingell proposed a national tax on carbon that would start at $10 per ton of carbon, plus $0.10 per gallon for gasoline and get fuel, rising each year for five years to $50 per ton of carbon and $0.50 a gallon for gasoline and jet fuel. On average, this would come out to $0.63 per gallon of gasoline and $0.90 per 100 KWh on average across the country.