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The amount of the carbon tax is one of the dimensions that the US government could decide upon. As a reference, a recent report of the Environmental Protection Agency in 2023 estimates that a carbon tax of at least $120 per tonne of CO2, meaning about $1.00 per gallon of gasoline, would account for the expected damages for the CO2 emissions and thus increase well-being (“EPA Report on the Social Cost of Greenhouse Gases: Estimates Incorporating Recent Scientific Advances”).
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