Implications of a US Carbon Tax on Agricultural Markets and GHG Emissions from Land-use Change

Rising concerns about climate change have led to the introduction of carbon policies around the globe. In January 2019, the Energy Innovation and Carbon Dividend (EICD) Act of 2019 was introduced to the House of Representatives.1 The act proposes a carbon tax of $15/ton of carbon dioxide equivalent (t-1 CO2-e) starting in calendar year 2019, and covers entities such as refineries, coal mines, and natural gas producers. Adjusted for inflation, the tax increases $10 each year and is subject to adjustments given the under- or over-achievement of annual emission reduction targets. The tax ceases if greenhouse gas (GHG) emissions are at or below 10% of the 2016 GHG emissions