Italy Attempts to Move Beyond Boom and Bust

Although an Italian carbon tax is only in the planning stage, its theoretical structure is very promising. According to the Italian government, the tax’s revenues would be devoted to funding clean energy projects. In that way, the tax mirrors the structure of ITIF’s proposed “innovation carbon price”, which would recycle roughly 83 percent of tax revenues back to the economy in the form of growth and innovation inducing business tax incentives, with the remaining 17 percent or so of revenues going towards a Clean Energy Innovation Trust Fund that would support clean energy innovation initiatives.