The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change
The IMF-World Bank Climate Policy Assessment Tool (CPAT): A Model to Help Countries Mitigate Climate Change

Author: Mr. Simon Black

Publisher: International Monetary Fund

Published: 2023-06-23

Total Pages: 72

ISBN-13:

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To stabilize the climate, global greenhouse gas emissions must be cut by 25 to 50 percent by 2030 compared to 2019. Such an unprecedented rate of decarbonization necessitates climate mitigation policies across countries, notably carbon pricing, fossil fuel subsidy reform, renewable subsidies, feebates, emission rate regulations, and public investments. To design and implement effective, efficient, and equitable policies, governments need tools to assess economic, environmental, fiscal, and social impacts. To support this effort, the IMF and World Bank are making their joint Climate Policy Assessment Tool (CPAT) available to governments. CPAT is a transparent, flexible, and user-friendly model covering over 200 countries. It allows for the rapid quantification of impacts of climate mitigation policies, including on energy demand, prices, emissions, revenues, welfare, GDP, households and industries, local air pollution and health, and many other metrics. This paper describes the CPAT model, its data sources, key assumptions, and caveats.

Norway
Norway

Author: International Monetary Fund. European Dept.

Publisher: International Monetary Fund

Published: 2023-07-26

Total Pages: 69

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After strong performance in 2022, some deceleration in growth is expected, given geopolitical headwinds and tightening of financial conditions, including globally. Risks are balanced, and there is ample policy space in the short term to accommodate downside surprises. However, leveraging its strong fundamentals, Norway is encouraged to focus on the longer-term structural agenda, given soon-to-be-pressing issues with demographics.

Climate Change Challenges and Opportunities in Latin America and the Caribbean
Climate Change Challenges and Opportunities in Latin America and the Caribbean

Author: Anna Ivanova

Publisher: International Monetary Fund

Published: 2024-07-19

Total Pages: 187

ISBN-13:

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The analysis in the book suggests that LAC countries are facing substantial challenges related to climate change but have tools at their disposal to seize the opportunities that the climate change presents. To maximize opportunities and minimize the risks LAC countries will need to improve flexibility and adaptability of their economies. Policies aimed at supporting the reallocation of labor and capital across sectors, investing in basic skills and human capital, improving transparency and economic governance to encourage investment in technology and know-how, and creating fiscal space to manage the climate transition would help LAC countries position themselves to take advantage of the opportunities afforded by the climate transition.

Balancing Environmental, Fiscal, and Welfare Impacts of Transportation Decarbonization in France
Balancing Environmental, Fiscal, and Welfare Impacts of Transportation Decarbonization in France

Author: Nate Vernon

Publisher: International Monetary Fund

Published: 2024-07-12

Total Pages: 44

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France has taken a leadership role in global mitigation and made significant progress towards reducing greenhouse gas emissions, but further efforts will be needed to meet domestic mitigation targets. Accelerating emissions reductions from road transportation will be a key part of this strategy, as they account for nearly one-third of national emissions. At the same time, with the shift to more lightly taxed electric vehicles over the next decade, fiscal revenue from the sector is projected to decline and externalities, such as congestion, to worsen. Building on existing policies, a comprehensive reform that combines revenue-neutral continuous feebate schemes with a gradual introduction of road user and congestion charges could support mitigation targets, while maintaining revenue and regulating externalities. This paper discusses administratively feasible options to introduce such policies as well as key welfare and distributional considerations.

Policies to Address Climate Change
Policies to Address Climate Change

Author: Geoffrey N. Keim

Publisher: International Monetary Fund

Published: 2024-02-05

Total Pages: 22

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While the near-term priorities are national defense and macroeconomic stabilization, gradually incorporating climate change considerations into policy design will become increasingly important after the war and into the long term. As regards climate change adaptation, investments will need to be made with a view to maintain long-term debt sustainability. Policy reforms will also be needed to move to a low-emissions economy to deliver international commitments and achieve the broader objective of European Union accession. Potential exists to deliver on climate priorities alongside implementing recovery and reconstruction efforts, while maintaining macroeconomic stability, and ensuring social protection and equity.

The Green Frontier: Assessing the Economic Implications of Climate Action
The Green Frontier: Assessing the Economic Implications of Climate Action

Author: JEAN PISANI-FERRY

Publisher: Peterson Institute for International Economics

Published: 2024-06-03

Total Pages: 530

ISBN-13: 0881327522

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Addressing climate change will entail major challenges for economic growth, employment, inflation, and public finances. Mitigating the impact of global warming will yield benefits and costs that are yet to be quantified and defined for the global economy and for nations, workers, households, and companies. The Green Frontier: Assessing the Economic Implications of Climate Action offers research originally presented at a major conference at the Peterson Institute for International Economics in June 2023 in Washington, DC, organized to shed light on this still unexplored field of study and recommend policies for the future.

Japan
Japan

Author: International Monetary Fund. Asia and Pacific Dept

Publisher: International Monetary Fund

Published: 2024-05-13

Total Pages: 81

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The Japanese economy continues to grow after the pandemic, with broad-based price increases following three decades of low inflation. The “new form of capitalism” agenda and children-related policies are key priorities for the Kishida administration, but the fiscal burden has increased.

The Nexus of Climate and Monetary Policy: Evidence from the Middle East and Central Asia
The Nexus of Climate and Monetary Policy: Evidence from the Middle East and Central Asia

Author: Nordine Abidi

Publisher: International Monetary Fund

Published: 2024-04-26

Total Pages: 30

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This paper investigates the effects of climate shocks on inflation and monetary policy in the Middle East and Central Asia (ME&CA) region. We first introduce a theoretical model to understand the impact of climate risks on headline and food inflation. In particular, the model shows how climate shocks could affect the path of policy rates through food prices. We then use local projections to estimate the impact of climate shocks on headline and food inflation. The results show that price stability is more easily achievable under positive climate conditions. Overall, our findings shed new light on the importance of considering climate-related supply shocks when designing monetary policy, particularly in countries where food makes up a significant part of the CPI-basket.

Ukraine
Ukraine

Author: International Monetary Fund. European Dept.

Publisher: International Monetary Fund

Published: 2023-12-11

Total Pages: 21

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Ukraine: Selected Issues

Cryptocarbon: How Much Is the Corrective Tax?
Cryptocarbon: How Much Is the Corrective Tax?

Author: Mr. Shafik Hebous

Publisher: International Monetary Fund

Published: 2023-09-15

Total Pages: 32

ISBN-13:

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With increasing awareness of past environmental damage from crypto mining, questions arise as to how persistent the problem will be in the future and how taxation can help in addressing this negative externality. We estimate that the global demand for electricity by crypto miners reached that of Australia or Spain, resulting in 0.33% of global CO2 emissions in 2022. Projections suggest sustained future electricity demand and indicate further increases in CO2 emissions if crypto prices significantly increase and the energy efficiency of mining hardware is low. To address global warming, we estimate the corrective excise on the electricity used by crypto miners to be USD 0.045 per kWh, on average. Considering also air pollution costs raises the tax to USD 0.087 per kWh. Country-specific estimates vary depending on their electricity sources.