Fiscal Monitor, October 2019: How to Mitigate Climate Change

October 10, 2019

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Fiscal Monitor, October 2019: How to Mitigate Climate Change, (USA: International Monetary Fund, 2019) accessed November 21, 2024

Summary

This report emphasizes the environmental, fiscal, economic, and administrative case for using carbon taxes, or similar pricing schemes such as emission trading systems, to implement climate mitigation strategies. It provides a quantitative framework for understanding their effects and trade-offs with other instruments and applies it to the largest advanced and emerging economies. Alternative approaches, like “feebates” to impose fees on high polluters and give rebates to cleaner energy users, can play an important role when higher energy prices are difficult politically. At the international level, the report calls for a carbon price floor arrangement among large emitters, designed flexibly to accommodate equity considerations and constraints on national policies. The report estimates the consequences of carbon pricing and redistribution of its revenues for inequality across households. Strategies for enhancing the political acceptability of carbon pricing are discussed, along with supporting measures to promote clean technology investments.

Subject: Carbon tax, Climate change, Economic and financial statistics, Emissions trading, Environment, Fiscal policy, Fiscal stance, Government finance statistics, Greenhouse gas emissions, Public debt, Taxes

Keywords: Africa, Asia and Pacific, Baseline price, Basic rate, Carbon prices country, Carbon tax, Climate change, Cost advantage, Cost estimate, Country abbreviation, Efficiency cost, Emission price requirement, Emission trading system, Emissions trading, Establishment of standard, Europe, Extraction firm, Firm, Firms' emission, Floor price, FM, Global, Government finance statistics, Greenhouse gas emissions, Market mechanism, Middle East, Mitigation cost, Nominal GDP, North Africa, P LW, Power-generating firm, Sub-Saharan Africa, Tackling debt vulnerability, Term id

Publication Details

Pages:

96
Volume:

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DOI:

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Issue:

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Series:

Fiscal Monitor No. 2019/002
Stock No:

FMOEA2019002
ISBN:

9781498321228
ISSN:

2219-276X

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