Potential impacts of federal regulation of greenhouse gas emissions on Wyoming's energy-derived tax revenue

The implementation of federal climate change legislation would alter the relative price advantages of fossil fuels produced in Wyoming and resultant tax revenue. Our policy model demonstrates changes in the prices and quantities produced of coal, natural gas, oil, and wind energy--including electrical generation and multiplier effects--resulting from federal action. With carbon dioxide equivalent (CO (sub 2) -e) prices ranging from $0-$70/ton, Wyoming tax revenue would increase due to tremendous growth in price and production of natural gas, which substitutes for declines in coal revenue. Wind energy contributions to tax revenue would remain limited due to a low effective tax rate relative to fossil fuels.