A carbon tax or cap-and-trade program could make emission-intensive U.S. products less competitive and increase emissions overseas. Import tariffs related to emissions could reduce those effects but would be hard to implement.
Under a broad-based carbon tax or cap-and-trade program, some of the reduction in U.S. emissions would probably be offset by increases in foreign emissions, a phenomenon known as carbon leakage.
To help CBO achieve correctness and consistency in the writing for its reports and cost estimates, the agency produces a guide to style and word usage. The current update is the fourth such guide in the agency’s history.