There’s a blatantly obvious way for the US to fight climate change and pay for new infrastructure: a carbon tax

There’s a blatantly obvious way for the US to fight climate change and pay for new infrastructure: a carbon tax

Before taking office, President Joe Biden's campaign plan made clear that his administration would make infrastructure spending and climate change a priority. It's clear he won't have trouble finding support in Congress, especially on infrastructure, where members of both parties have floated trillions of new spending.

But not much time has been dedicated to how massive public investments in infrastructure and climate change should be financed, or how to involve the private sector in tackling these challenges. Relying on borrowing would be counterproductive “” studies have found that results from infrastructure spending are better when actually paid for “” and could add to an already poor fiscal outlook. The national debt was already growing faster than the economy prior to the pandemic, and borrowing to fight COVID-19 and support the economy has pushed deficits to all-time highs.

However, by raising revenue from carbon-emitting activities, we can simultaneously help fund new infrastructure projects and deter the use of fossil fuels. Some other taxes have similar dual features of generating revenue and putting a price on activities that harm society as a whole, like cigarette taxes. But carbon taxes are especially unique in how this one policy can achieve so many goals at once.

Carbon-based