{"id":93,"date":"2025-05-29T08:30:08","date_gmt":"2025-05-29T12:30:08","guid":{"rendered":"https:\/\/people.bsu.edu\/econbriefs\/?p=93"},"modified":"2025-06-13T11:23:02","modified_gmt":"2025-06-13T15:23:02","slug":"co%e2%82%82-past-present-policy-by-dr-cecil-bohanon-and-dr-john-horowitz","status":"publish","type":"post","link":"https:\/\/people.bsu.edu\/econbriefs\/2025\/05\/29\/co%e2%82%82-past-present-policy-by-dr-cecil-bohanon-and-dr-john-horowitz\/","title":{"rendered":"CO\u2082: Past, Present, Policy \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz"},"content":{"rendered":"<p><span data-contrast=\"auto\">Climate models show a relationship between atmospheric carbon dioxide (CO2) concentration and our world&#8217;s climate. Glacial ice core data show climate for the last 800,000 years. An article in Science, <\/span><a href=\"https:\/\/www.science.org\/doi\/10.1126\/science.adi5177\"><span data-contrast=\"none\">Toward a Cenozoic History of Atmospheric CO2<\/span><\/a><span data-contrast=\"auto\">, estimated CO2 levels for the last 66 million years. In the late 1700s, atmospheric CO2 levels were about 280 parts per million (ppm). CO2 levels are now about 50% higher at 420 ppm. However, CO2 levels have fallen for the last 51 million years from about 1600 ppm to less than 270 ppm before the Industrial Revolution. The previous time world CO2 levels consistently exceeded today&#8217;s 420 ppm was about 14 million years ago, during the middle Miocene, after which the earth slowly cooled towards a series of ice ages. Before that, CO2 levels and temperatures were much higher than today.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:720,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Nevertheless, greenhouse gases hold heat in the earth\u2019s atmosphere. These include CO2, methane, nitrous oxide, and fluorinated gases. <\/span><a href=\"https:\/\/www.epa.gov\/ghgemissions\/overview-greenhouse-gases\"><span data-contrast=\"none\">CO2 creates nearly 80% of new greenhouse gas emissions<\/span><\/a><span data-contrast=\"auto\">. CO2 emissions come from burning fossil fuels, solid waste, wood, and other biological materials. Given the warming climate, most people see a need to reduce CO2 emissions. But how do we accomplish this task? Some policies that may reduce carbon use are non-fossil fuel energy sources and carbon taxes, which charge users for carbon emissions.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:720,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/www.aeaweb.org\/articles?id=10.1257\/jel.20211560&amp;ArticleSearch%5Bwithin%5D%5Barticletitle%5D=1&amp;ArticleSearch%5Bwithin%5D%5Barticleabstract%5D=1&amp;ArticleSearch%5Bwithin%5D%5Bauthorlast%5D=1&amp;ArticleSearch%5Bq%5D=carbon+tax&amp;JelClass%5Bvalue%5D=0&amp;journal=&amp;from=a&amp;from=j\"><span data-contrast=\"none\">Most economists view carbon taxes as an economically<\/span><\/a><span data-contrast=\"auto\"> efficient way to reduce CO2 levels and a meaningful way to mitigate global warming. Carbon taxes can incentivize producers, governments, and consumers to reduce CO2 levels. Carbon taxes also help businesses have <\/span><a href=\"https:\/\/www.aeaweb.org\/articles?id=10.1257\/pandp.20201083&amp;ArticleSearch%5Bwithin%5D%5Barticletitle%5D=1&amp;ArticleSearch%5Bwithin%5D%5Barticleabstract%5D=1&amp;ArticleSearch%5Bwithin%5D%5Bauthorlast%5D=1&amp;ArticleSearch%5Bq%5D=carbon+tax&amp;JelClass%5Bvalue%5D=0&amp;journal=&amp;from=a&amp;from=j\"><span data-contrast=\"none\">more certainty about future abatement costs<\/span><\/a><span data-contrast=\"auto\"> than a cap-and-trade program, where the price of trading emission allowances can fluctuate. They are preferable to technological mandates that impose one-size-fits-all standards on all carbon emitters. However, carbon taxes raise energy prices, which is politically unpopular and can make a country\u2019s exports less competitive.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:720,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The <\/span><a href=\"https:\/\/www.aeaweb.org\/articles?id=10.1257\/aer.104.5.563&amp;ArticleSearch%5Bwithin%5D%5Barticletitle%5D=1&amp;ArticleSearch%5Bwithin%5D%5Barticleabstract%5D=1&amp;ArticleSearch%5Bwithin%5D%5Bauthorlast%5D=1&amp;ArticleSearch%5Bq%5D=carbon+tax&amp;JelClass%5Bvalue%5D=0&amp;journal=&amp;from=a&amp;from=j\"><span data-contrast=\"none\">benefits of a carbon tax<\/span><\/a><span data-contrast=\"auto\"> depend on the tax rate, the collection of the tax, and the use of the revenue. <\/span><a href=\"https:\/\/chrome-extension\/\/efaidnbmnnnibpcajpcglclefindmkaj\/https:\/pubs.aeaweb.org\/doi\/pdfplus\/10.1257\/jel.20211560\"><span data-contrast=\"none\">Some economies have implemented carbon taxes<\/span><\/a><span data-contrast=\"none\">,<\/span><span data-contrast=\"auto\"> though many economists think the rates are lower than optimal. In using the carbon tax revenue, those looking to increase economic efficiency suggest reducing taxes on capital, and those looking for increased economic equity suggest transferring the money equally to all residents. Nevertheless, most agree with our late colleague Thad Godish: it is in our best interest to reduce emissions in low-cost ways.\u00a0<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559731&quot;:720,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Climate models show a relationship between atmospheric carbon dioxide (CO2) concentration and our world&#8217;s climate. Glacial ice core data show climate for the last 800,000 years. An article in Science, Toward a Cenozoic History of Atmospheric CO2, estimated CO2 levels for the last 66 million years. In the late 1700s, atmospheric CO2 levels were about [&hellip;]<\/p>\n","protected":false},"author":112,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1278],"tags":[944,932,942,931,933,936,947,147,524,788,450,946,939,940,934,935,943,937,938,941,945,948],"class_list":["post-93","post","type-post","status-publish","format-standard","hentry","category-energy-and-climate","tag-abatement-cost","tag-carbon-dioxide","tag-carbon-tax","tag-climate","tag-co2","tag-earth","tag-economic-equity","tag-economics","tag-economist","tag-emissions","tag-energy","tag-energy-prices","tag-fluorinated-gases","tag-fossil-fuels","tag-glacial-ice-core-data","tag-greenhouse-gases","tag-incentive","tag-methane","tag-mitrous-oxide","tag-solid-waste","tag-technological-mandate","tag-thad-godish"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>CO\u2082: Past, Present, Policy \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/people.bsu.edu\/econbriefs\/2025\/05\/29\/co\u2082-past-present-policy-by-dr-cecil-bohanon-and-dr-john-horowitz\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CO\u2082: Past, Present, Policy \u2013 by Dr. Cecil Bohanon and Dr. John Horowitz - Econ Briefs\" \/>\n<meta property=\"og:description\" content=\"Climate models show a relationship between atmospheric carbon dioxide (CO2) concentration and our world&#8217;s climate. 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