A report by the Center for a Sustainable Economy and the Economic Policy Institute states that the U.S. economy can grow under policies that tax carbon dioxide emissions while promoting energy efficiency and renewable energy.
The study used a macroeconomic model to examine the effects of these policies. Included are policies to assist energy-intensive industries that would be hurt by a carbon tax, and policies to help workers that would be displaced, such as coal industry workers. The model also assumed that most of the revenues from the carbon tax would go towards a cut in income tax.