US energy tax policy and climate change

The Biden administration has committed to reducing U.S. greenhouse gas emissions to half of 2005 levels by 2030. To help meet that goal, the Democratic fiscal strategy relies heavily on increased infrastructure spending financed by higher corporate and individual income taxes. This proposed policy focuses on subsidizing alternative energy sources and conservation rather than relying on carbon pricing. What are the pros and cons of this approach, and is the overall strategy adequate to achieve targeted emissions reductions?

On October 27, ahead of the 2021 United Nations Climate Change Conference in Glasgow (October 31 to November 12), the Urban-Brookings Tax Policy Center and the Brookings Center on Regulation and Markets brought together climate and tax policy experts to examine recent proposals for U.S. energy tax policy. Catherine Wolfram, deputy assistant secretary of climate and energy economics at the U.S. Department of the Treasury, shared her perspective on the Biden administration’s climate strategy. Following her keynote, an expert panel consisting of Gilbert Metcalf (Tufts University), Carole Nakhle (Crystol Energy), and Kurt Van Dender (OECD), moderated by Thornton Matheson (Urban-Brookings Tax Policy Center), further discussed the U.S. approach to energy tax policy.

Viewers submitted questions for speakers by emailing events@brookings.edu or via Twitter using #taxandclimate.