Using Carbon Tax to Reach the U.S.’s 2050 NDCs Goals—A CGE Model of Firms, Government, and Households

Our study shows how the United States government can achieve its goal of Nationally Determined Contribution (NDC) in 2025, 2030, and 2050 by reducing energy consumption through a pure carbon tax. To emissions reduction goals, it is necessary for U.S. to impose long-term tax that balances taxes on labour, capital, energy, carbon. Therefore, this study, two-layer CGE Cobb–Douglas model, rate set while balancing production profit functions government, businesses, households. This concludes price will increase from USD 0.4391/kg CO2 2020 2.5671/kg 2050, when target increased 17% 83%