Carbon tax profile for Alabama (Ariana Johnson; previous version by Jaemoon Kim)



Alabama
1990
2007
% change 1990-2007
Fossil fuel CO2 emissions, in millions of metric tonnes[1]
110
145.2
+32%
Fossil fuel CO2 emissions, in millions of short tons[2]
121
160
+32%
Population, in millions[3]
4.0
4.6
+15%
Per capita CO2 emissions, in short tons
30.2
34.8
+15.2%

Per capita emissions in Alabama in 2007 were quite a bit higher than the U.S. average, which was 21.0 short tons per capita.[4] Alabama produces large amounts of coal, but still imports more in order to about half of the State's demands. Additionally, natural gas is produced, much of which comes from offshore wells in the Gulf of Mexico as well as from coalbed methane deposits. Due to numerous dams along rivers in Alabama, plenty of hydroelectric power is produced; it produces the greatest amount of hydroelectric power east of the Rocky Mountains. Energy from wood resources are greatly produced; Alabama contains one of the world’s largest solid biofuel plants.[5]

A carbon tax of $30 per short ton of CO2 (about $0.30 per gallon of gasoline, or about $0.03 per kWh of coal-fired power) would have raised about $4.3 billion in 2007 (about $940 per person), assuming a 10% reduction in emissions. The graph below shows the breakdown of fossil fuel emissions broken into categories. [6]


Alabama1.png


For comparison purposes, the total amount of government revenue from taxes in 2007 was about $8.7 billion. About $3.5 billion came from individual income taxes, $256 million from local sales tax and selective sales tax, such as motor fuel, alcohol, tobacco, and other taxes.[7] So with a carbon tax of $30 per short ton of CO2 the money generated would have been more than enough to cover nearly half of the total taxes, or both income and sales taxes.
  1. ^ From EPA, “State CO2 Emissions from fossil fuel combustion, 1990-2007”, linked from here.
  2. ^ 1 metric tonne equals 1.1023 short tons.
  3. ^ 2007 population from the U.S. Census Bureau, http://www.census.gov/popest/states/NST-ann-est.html. 1990 population from U.S. Census Bureau, http://www.census.gov/popest/archives/1990s/ST-99-02.txt
    .
  4. ^ U.S. population of 301.6 million in 2007 from U.S. Census Bureau, http://www.census.gov/popest/states/NST-ann-est.html. U.S. carbon emissions of 5.757 billion tonnes (or 6.346 billion short tons) of CO2 from EPA's 2010 U.S. Greenhouse Gas Inventory Report
    .
  5. ^ EIA state profile
  6. ^ From EPA, “State CO2 Emissions from fossil fuel combustion, 1990-2007”, linked from here
  7. ^ "2007 Annual Report" The Alabama Department of Revenue . Accessed online 17 August 2010. PDF, linked at http://www.revenue.alabama.gov/anlrpt.html