Distributional impacts of carbon pricing in low and middle-income countries

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Steckel, Jan Christoph and Renner, Sebastian and Missbach, Leonard (2021) Distributional impacts of carbon pricing in low and middle-income countries. CESifo Forum, 22 (5). pp. 26-32. ISSN 1615-245X (Print) 2190-717X (Online)

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Abstract

The climate targets agreed upon in the Paris Agreement will eventually need to be backed by ambitious climate policies. Putting a price on carbon and abolishing subsidies on fossil fuels is usually widely agreed upon by economists to be the economically efficient solution (High-Level Commission on Carbon Prices 2017). An increasing amount of countries, including low and middle-income economies (LMICs), have already introduced (or plan to do so) carbon pricing schemes. Yet, the introduction of carbon pricing schemes frequently triggers concerns regarding the distributional justice of climate policy. The question of distributional effects relates closely to the political feasibility of reforms. A regressive carbon price would not only be problematic from a perspective of equity and justice, but very likely also be deemed to fail politically.
Item Type: Article
Divisions: Faculty of Engineering and Natural Sciences > Academic programs > Manufacturing Systems Eng.
Faculty of Engineering and Natural Sciences
Depositing User: IC-Cataloging
Date Deposited: 29 Jul 2022 13:01
Last Modified: 29 Jul 2022 13:01
URI: https://research.sabanciuniv.edu/id/eprint/43088

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