Where Is the Carbon Tax after Thirty Years of Research?
This paper takes a dive into the deep literature on the carbon tax accumulated through active and continuous research over the past 30 years. It also presents the ongoing debate and implementation of the carbon tax in practice. The paper discusses...
| Main Author: | |
|---|---|
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/180641529946278229/Where-is-the-carbon-tax-after-thirty-years-of-research http://hdl.handle.net/10986/29946 |
| Summary: | This paper takes a dive into the deep
literature on the carbon tax accumulated through active and
continuous research over the past 30 years. It also presents
the ongoing debate and implementation of the carbon tax in
practice. The paper discusses the evolution of the carbon
tax literature, classifying it by the issues investigated
and methodology used for the investigation. It finds that
the literature enlightens four key issues: (i) economic
impacts, (ii) choices for revenue recycling, (iii)
distributional implications, and (iv) competitiveness and
border tax adjustment. Quantitative analysis, especially
computable general equilibrium modeling, is the main method
employed in the literature. The study shows that potential
adverse economic impacts and competitiveness concerns are
the main impediments to the introduction of the carbon tax.
Extensive examinations of carbon tax issues at the global,
regional, and country levels have led to innovative measures
to address these concerns. While the carbon tax was mainly a
subject of academic discussion until few years back, it has
generated good attention for policy makers, particularly
after the Paris Agreement on climate change, and is being
considered as one of the main market instruments to address
global climate change. Although several important issues
related to the carbon tax have been well researched, its
potential interactions with poverty and shared prosperity
are yet to be investigated. |
|---|