Publication:
Quasi-Experimental Evidence on Carbon Pricing

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dc.contributor.authorVrolijk, Kasper
dc.contributor.authorSato, Misato
dc.date.accessioned2023-08-22T19:28:24Z
dc.date.available2023-08-22T19:28:24Z
dc.date.issued2023-03-29
dc.description.abstractA growing literature suggests that carbon emissions are most efficiently reduced by carbon pricing. The evidence base on the effectiveness of market-based mechanisms, however, faces three key limitations: studies often (a) predict, rather than evaluate effects, (b) show large difference in findings, and (c) cannot always infer causal relations. Quasi-experimental studies can address these challenges by using variation in policies over time, space, or entities. This paper systematically reviews this new literature, outlines the benefits and caveats of quasi-experimental methodologies, and verifies the reliability and value of quasi-experimental estimates. The overall evidence base documents a causal effect between carbon pricing and emission reductions, with ambiguous effects on economic outcomes, and there are important gaps and inconsistencies. This review underscores that estimates should be interpreted with care because of: (a) inappropriate choice of method, (b) incorrect implementation of empirical analysis (e.g., violate identifying assumptions), and (c) data limitations. More cross-learning across studies and use of novel empirical strategies is needed to improve the empirical evidence base going forward.en
dc.identifier.citationThe World Bank Research Observer
dc.identifier.doi10.1596/40253
dc.identifier.issn0257-3032 (print)
dc.identifier.issn1564-6971 (online)
dc.identifier.urihttps://openknowledge.worldbank.org/handle/10986/40253
dc.language.isoen_US
dc.publisherPublished by Oxford University Press on behalf of the World Bank
dc.relation.ispartofseriesWorld Bank Research Observer
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCARBON PRICING
dc.subjectEMPIRICAL EVIDENCE
dc.subjectPOLICY IMPACT
dc.subjectQUASI-EXPERIMENTAL DESIGNS
dc.titleQuasi-Experimental Evidence on Carbon Pricingen
dc.typeJournal Article
dspace.entity.typePublication
okr.associatedcontenthttps://academic.oup.com/wbro/article/38/2/213/7093113 Journal website (version of record)
okr.crossref.titleQuasi-Experimental Evidence on Carbon Pricing
okr.date.disclosure2023-08-22
okr.doctypePublications & Research::Journal Article
okr.identifier.doi10.1093/wbro/lkad001
okr.identifier.doihttp://dx.doi.org/10.1596/40253
okr.language.supporteden
okr.pagenumber213–248
okr.peerreviewAcademic Peer Review
okr.region.geographicalWorld
okr.topicEnvironment::Carbon Policy and Trading
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicEnvironment::Adaptation to Climate Change
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicEnvironment::Environmental Economics & Policies
okr.volume38 (2)
relation.isJournalIssueOfPublicationa0531c40-19ed-4abe-ae22-a9901ae32ea9
relation.isJournalIssueOfPublication.latestForDiscoverya0531c40-19ed-4abe-ae22-a9901ae32ea9
relation.isJournalOfPublication9e5fbe82-492f-4142-8378-17d50245d9de
relation.isJournalVolumeOfPublicationa9b46777-0568-461f-bc36-2bbe95fd1c74
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