Graduation Year

2022

Date of Submission

4-2022

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

William Ascher

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1999 Benjamin SE Rodman

Abstract

Climate change is rapidly increasing as more greenhouse gasses are trapped in the atmosphere, necessitating an international effort in mitigating these global changes before climate disaster. Among signers of the 2015 Paris Agreement, this need for mitigation practices is most commonly addressed internationally in the form of an emissions trading scheme (ETS) such as cap-and-trade or a carbon tax, effectively pricing carbon and controlling output. A notable signee without a national carbon pricing policy is the United States, the second largest greenhouse gas emitter globally. This thesis investigates the predicted effects and effectiveness of a domestic carbon tax to determine a plausible solution to mitigating climate change in adherence to the Paris Agreement. The findings demonstrate that a carbon tax is not only the more efficient method for national emission reductions, but can be implemented without reducing market competitiveness or disproportionately affecting the less fortunate. These findings and evaluation serve as a baseline point for further research to build upon in demonstrating that carbon pricing through tax is effective and realistic in the United States.

This thesis is restricted to the Claremont Colleges current faculty, students, and staff.

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