Carbon tax profile for Michigan (Derek Blackstone, plus edits by Yoram Bauman)


Michigan
1990
2007
% change 1990-2007
Fossil fuel CO2 emissions (millions of metric tons) [1]
182
183
+0.6%
Fossil fuel CO2 emissions (millions of short tons)[2]
201
202
+0.5%
Population (in millions)[3]
9.3
10.1
+7.9%
Per capita CO2 emissions (in short tons)
21.6
20.7
-4.3%

Michigan has a high consumption of energy, due to the State's high population, large area, cold weather and active industrial activities. Per capita emissions in Michigan State in 2007 were slightly less than the U.S. average, which was 22.4 short tons per capita.[4] During the period from 1990 to 2007, the CO2 emissions reduced by 4.3% per capita. Between the years 2005 and 2007, fossil fuel CO2 emissions were reduced by 3.3% in millions of metric tons, and 3.4% in millions of short tons.[5] This is probably because of the Michigan Renewable Energy Program (MREP), which was established in 2002 by the legislature to promote the use of renewable energy in the state.[6]

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 $4.8 billion in 2007 (about $497 per person), assuming a 20% reduction in emissions.

For comparison purposes, according to the 2007-08 Annual Report of the State Treasurer the state income tax generated about $6.5 billion in 2007 (the latest data, for 2008, is $7.3b), the state "single business tax" generated about $1.9 billion in 2007 (the SBT generated $1.0 billion in 2008 but is being replaced by the "Michigan business tax", which generated $1.4b in 2008), the sales and use taxtogether generated $8.2 billion in 2007 ($8.2b in 2008), and the "State Education Tax" (a property tax) generated $2.1 billion in 2007 ($2.0b in 2008).

For tax year 2008, Michigan also devoted $145 million to a 10% bump-up on the federal Earned Income Tax Credit. Earned Income Tax Credit 2008 notes that "for tax years 2009 and following...the Michigan EITC increases to 20 percent of the federal credit", suggesting that the Michigan EITC will increase in size to about $300 million. This same document also notes that Michigan also has a Homestead Property Tax Credit (a "longstanding Michigan credit designed to provide tax relief to Michigan residents with property taxes that exceed a percentage of their income specified in statute") that is about the same size that the Michigan EITC will grow to in 2009.

Here is an outline of the Michigan tax system, produced by the Citizens Research Council of Michigan (and linked via this page from the State Treasury).
  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 6.1201 billion tons of CO2 from EPA, http://www.epa.gov/climatechange/emissions/downloads10/US-GHG-Inventory-2010_ExecutiveSummary.pdf.
  5. ^ From EPA, “State CO2 Emissions from fossil fuel combustion, 1990-2007”, linked from here.
  6. ^ See state profiles from the EIA, http://tonto.eia.doe.gov/state/index.cfm.