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Putting a Price on Carbon: Ensuring Equity

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This issue brief describes the variation across U.S. households in the effects of a carbon pricing policy. According to the brief, the most influential factor determining the variation across regions and socioeconomic groups is the use of the revenue generated by payments of the carbon price, variation that is entirely in the hands of policy designers. The authors show how revenues can be used to address regional disparities and ensure unfair burdens are not imposed on households that cannot afford them.