Analysis of a Carbon Fee or Tax as a Mechanism to Reduce GHG Emissions in Massachusetts (Massachusetts Department of Energy Resources, 2014)

This study was commissioned by the Massachusetts Department of Energy Resources (DOER) to analyze how a possible revenue-neutral carbon tax (or fee) could be implemented in the Commonwealth. A carbon fee/tax is a simple and transparent way to create a price for emitting carbon dioxide (and possibly other greenhouse gases) to the atmosphere. DOER requested the tax to be revenue-neutral, so that the residents, companies, and other institutions of the Commonwealth would receive back via tax cuts or rebates as much money as they are paying in carbon taxes. There was broad support during the public stakeholder process for a system designed in this way. The full study and its appendices discuss in depth many of the existing examples of carbon taxes throughout the world.

Download the full document.