Climate royalty surcharges

Concerns about climate change have led to calls for reforming or eliminating the extensive US federal fossil fuel leasing program. One proposed reform is adding a surcharge existing royalty rate. We consider determining this by maximizing social welfare, including damages from combusting fuels and value of raising revenue when marginal public funds exceeds one. estimate that resulting would lead meaningful declines in global emissions, significantly increase receipts, result rates substantially greater than those currently place. also evaluate onshore made Inflation Reduction Act 2022, finding law's modest rate increases leaves substantial welfare gains, emissions reductions, revenues on table.