The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications
The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications

Author: Baoping Shang

Publisher: International Monetary Fund

Published: 2021-06-25

Total Pages: 32

ISBN-13: 151357339X

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Addressing the poverty and distributional impacts of carbon pricing reforms is critical for the success of ambitious actions in the fight against climate change. This paper uses a simple framework to systematically review the channels through which carbon pricing can potentially affect poverty and inequality. It finds that the channels differ in important ways along several dimensions. The paper also identifies several key gaps in the current literature and discusses some considerations on how policy designs could take into account the attributes of the channels in mitigating the impacts of carbon pricing reforms on households.

Global Carbon Pricing
Global Carbon Pricing

Author: Peter Cramton

Publisher: MIT Press

Published: 2017-06-16

Total Pages: 270

ISBN-13: 0262340399

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Why the traditional “pledge and review” climate agreements have failed, and how carbon pricing, based on trust and reciprocity, could succeed. After twenty-five years of failure, climate negotiations continue to use a “pledge and review” approach: countries pledge (almost anything), subject to (unenforced) review. This approach ignores everything we know about human cooperation. In this book, leading economists describe an alternate model for climate agreements, drawing on the work of the late Nobel laureate Elinor Ostrom and others. They show that a “common commitment” scheme is more effective than an “individual commitment” scheme; the latter depends on altruism while the former involves reciprocity (“we will if you will”). The contributors propose that global carbon pricing is the best candidate for a reciprocal common commitment in climate negotiations. Each country would commit to placing charges on carbon emissions sufficient to match an agreed global price formula. The contributors show that carbon pricing would facilitate negotiations and enforcement, improve efficiency and flexibility, and make other climate policies more effective. Additionally, they analyze the failings of the 2015 Paris climate conference. Contributors Richard N. Cooper, Peter Cramton, Ottmar Edenhofer, Christian Gollier, Éloi Laurent, David JC MacKay, William Nordhaus, Axel Ockenfels, Joseph E. Stiglitz, Steven Stoft, Jean Tirole, Martin L. Weitzman

The European Carbon Tax: An Economic Assessment
The European Carbon Tax: An Economic Assessment

Author: Fondazione Eni Enrico Mattei

Publisher: Springer Science & Business Media

Published: 1993

Total Pages: 298

ISBN-13: 9780792325208

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The possible introduction of a carbon tax in Europe is an issue which has attracted the attention of numerous economists and policymakers. The problems under debate concern the effects of the tax at different levels: what cost, in terms of GDP growth, will be paid by each European country? Will the effects on income distribution be larger than those on income level? Should the carbon tax be coordinated among the European countries or would it be better to impose a uniform tax rate on carbon emissions? Can Europe introduce the tax unilaterally or should this be done jointly, with the other industrialised countries? This book provides answers to such questions. It analyses the effects of the European carbon tax on both a domestic and at an international level.

Carbon-Energy Taxation
Carbon-Energy Taxation

Author: Mikael Skou Andersen

Publisher: OUP Oxford

Published: 2009-10-29

Total Pages: 352

ISBN-13: 0191610089

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When taxes are introduced on carbon and energy, and the revenue is used to reduce other taxes, will a positive effect be achieved both for the environment and for the economy? In 1990 Finland was the first country to introduce a tax on CO2. Later, Sweden, Denmark, Netherlands, Slovenia, Germany and the UK followed suit with tax reforms that shifted taxation from labour to carbon and energy. Over the years, CO2 and energy taxes have gradually been raised, so that in Europe taxes of more than 25 billion Euros a year have been shifted. This book examines carbon-energy taxation in detail and looks at tax shifting programmes for lowering other taxes. It offers extensive analysis on the basis of historical data and seeks to answer important questions for policy-making, such as: What was the impact of tax shifting for economic performance and competitiveness? By how much were emissions of CO2 reduced? Could energy-intensive industries cut further down on their fuel demand or did they loose market shares? To what extent was there 'leakage' from Europe, so that production and CO2 emissions were shifted to other countries or regions without CO2-abatement policy? The use of unique and original data, including sector-specific energy prices and taxes, as well as the use of advanced statistical techniques, such as co-integration analysis and panel-regression techniques along with the time-series estimated macro-economic model E3ME, make this a truly comprehensive volume. On the basis of the lessons learned in Europe, this volume indicates how carbon-energy taxation could usefully be combined with emissions trading, and discusses implications for future international climate policy, including how the IPCC recommendations for a gradual escalation in carbon price could be accomplished while preventing carbon leakage.

Fiscal Policy to Mitigate Climate Change
Fiscal Policy to Mitigate Climate Change

Author: Ruud A. de Mooij

Publisher: International Monetary Fund

Published: 2012-06-15

Total Pages: 218

ISBN-13: 1475508387

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Efforts to control atmospheric accumulations of greenhouse gases that threaten to heat up the planet are in their infancy. Although the IMF is not an environmental organization, environmental issues matter for its mission when they have major implications for macroeconomic performance and fiscal policy. Climate change clearly passes both these tests.

Carbon Pricing in Japan
Carbon Pricing in Japan

Author: Toshi H. Arimura

Publisher: Springer Nature

Published: 2020-09-17

Total Pages: 271

ISBN-13: 9811569649

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This open access book evaluates, from an economic perspective, various measures introduced in Japan to prevent climate change. Although various countries have implemented such policies in response to the pressing issue of climate change, the effectiveness of those programs has not been sufficiently compared. In particular, policy evaluations in the Asian region are far behind those in North America and Europe due to data limitations and political reasons. The first part of the book summarizes measures in different sectors in Japan to prevent climate change, such as emissions trading and carbon tax, and assesses their impact. The second part shows how those policies have changed the behavior of firms and households. In addition, it presents macro-economic simulations that consider the potential of renewable energy. Lastly, based on these comprehensive assessments, it compares the effectiveness of measures to prevent climate change in Japan and Western countries. Providing valuable insights, this book will appeal to both academic researchers and policymakers seeking cost-effective measures against climate change.

Carbon Markets in a Climate-Changing Capitalism
Carbon Markets in a Climate-Changing Capitalism

Author: Gareth Bryant

Publisher: Cambridge University Press

Published: 2019-02-21

Total Pages: 195

ISBN-13: 1108386229

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The promise of harnessing market forces to combat climate change has been unsettled by low carbon prices, financial losses, and ongoing controversies in global carbon markets. And yet governments around the world remain committed to market-based solutions to bring down greenhouse gas emissions. This book discusses what went wrong with the marketisation of climate change and what this means for the future of action on climate change. The book explores the co-production of capitalism and climate change by developing new understandings of relationships between the appropriation, commodification and capitalisation of nature. The book reveals contradictions in carbon markets for addressing climate change as a socio-ecological, economic and political crisis, and points towards more targeted and democratic policies to combat climate change. This book will appeal to students, researchers, policy makers and campaigners who are interested in climate change and climate policy, and the political economy of capitalism and the environment.

Fuel Taxes and the Poor
Fuel Taxes and the Poor

Author: Thomas Sterner

Publisher: Routledge

Published: 2012-03-29

Total Pages: 412

ISBN-13: 1136521712

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Fuel Taxes and the Poor challenges the conventional wisdom that gasoline taxation, an important and much-debated instrument of climate policy, has a disproportionately detrimental effect on poor people. Increased fuel taxes carry the potential to mitigate carbon emissions, reduce congestion, and improve local urban environment. As such, higher gasoline taxes could prove to be a fundamental part of any climate action plan. However, they have been resisted by powerful lobbies that have persuaded people that increased fuel taxation would be regressive. Reporting on examples of over two dozen countries, this book sets out to empirically investigate this claim. The authors conclude that while there may be some slight regressivity in some high-income countries, as a general rule, fuel taxation is a progressive policy particularly in low income countries. Rich countries can correct for regressivity by cutting back on other taxes that adversely affect poor people, or by spending more money on services for the poor. Meanwhile, in low-income countries, poor people spend a very small share of their money on fuel for transport. Some costs from fuel taxes may be passed on to poor people through more expensive public transportation and food transport. Nevertheless, in general the authors find that gasoline taxes become more progressive as the income of the country in question decreases. This book provides strong arguments for the proponents of environmental taxation. It has immediate policy implications at the intersection of multiple subject areas, including transportation, environmental regulation, development studies, and climate change. Published with Environment for Development initiative.

The European Carbon Tax: An Economic Assessment
The European Carbon Tax: An Economic Assessment

Author: Carlo Carraro

Publisher: Springer Science & Business Media

Published: 2012-12-06

Total Pages: 285

ISBN-13: 940111904X

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The possible introduction of a carbon tax in Europe is an issue which has attracted the attention of numerous economists and policymakers. The problems under debate concern the effects of the tax at different levels: what costs, in terms of GDP growth, will be paid by each European country? Will the effects on income distribution be larger than those on income level? Should the carbon tax be coordinated among the European countries or would it be better to impose a uniform tax rate on carbon emissions? Can Europe introduce the tax unilaterally or should this be done jointly, with the other industrialised countries? This book provides answers to such questions. It analyses the effects of the European carbon tax on both a domestic and at an international level.