Effects of Provisions in the Internal Revenue Code
on Greenhouse Gas Emissions – 1st Meeting
April 28-29, 2011
National Academies Keck Center
500 Fifth St., N.W.
Washington, DC 20036
Thursday, April 28th, 2011
8:00 AM Closed Session
11:00 AM Open Session
Presentation by sponsor, U.S. Dept. of the Treasury
Mark Mazur, Deputy Assistant Secretary for Tax Analysis
Curtis Carlson, Office of Tax Analysis
12:00 PM Closed Session
1:00 PM Open Session
Panel Discussion: Public finance issues of taxes and GHG emissions
Gilbert Metcalf, Tufts University
Ian Parry, International Monetary Fund
2:00 PM Open Session
4:00 PM Closed Session
5:00 PM Adjourn
Friday, April 29th, 2011
8:00 AM Closed Session
9:30 AM Open Session
How can models be used to understand the impacts of fiscal policies on energy use and GHG emissions?
Mun Ho, Resources for the Future
William Pizer, Dep. Ass’t Treasury Secretary for Energy& Environment
Lessly Goudarzi and Frances Wood, OnLocation, Inc.
10:15 AM Open Session
Hon. Earl Blumenauer, U.S. House of Representatives
11:00 AM Closed Session
3:00 PM Adjourn
Key Questions for the panel to consider:
1. Should the panel limit its analysis to CO2? or all GHGs? Or, should the panel also consider other major drivers of climate change such as changes in land cover? Are there other GHGs identified but not in the IPCC list?
2. What provisions of the Internal Revenue Code should the study analyze (these will be called “fiscal policies” to allow a broader concept)?
a. Should the panel consider only tax provisions? Also tax expenditures? Also subsidiesoutside the tax code?
b. Should the panel consider only energy-related provisions, or should it consider other broad based tax provisions that (may) have important effects on GHG emission (e.g., those relating to housing or aircraft).
c. Should the committee consider regulations or other instruments that have tax-like effects or are explicit alternatives to tax provisions (e.g., CAFE standards)?
d. How should the study treat direct expenditures linked to taxes – e.g., highway construction financed by fuel taxes?
e. Should the study consider the extra-territorial effects of U.S. tax law?
3. What is the appropriate time horizon for analysis?
4. What is the appropriate baseline? For example, should we assume the net revenue change is offset by a proportional adjustment of broad based taxes?
5. What approaches are available for analyzing fiscal policies relating to GHGs?
a. Should we look primarily to empirical energy models to estimate effects, or are there
other approaches that can be used?
b. Which models are appropriate? Do we need different models for different taxes or fiscal
c. How do the models translate fiscal policies into costs, prices or other metrics that would
affect energy production and consumption and GHG emissions?
d. Are there important (answerable) questions that we need to answer that we cannot use