dc.contributor.author	Strand, Jon
dc.date.accessioned	2020-10-22T17:36:20Z
dc.date.available	2020-10-22T17:36:20Z
dc.date.issued	2020-10
dc.description.abstract	This paper discusses compensation mechanisms to strengthen incentives for lower-income countries to adopt carbon taxes through donor-funded support programs. The paper considers two cases: the provision of climate finance when the host country uses the additional mitigation to meet its own greenhouse gas mitigation target (the "incremental cost price"); and a transaction in an international carbon market with the mitigation credit created by host country mitigation transferred outside the country (the “opportunity cost price”). Both offset the host country's deadweight loss from imposing a carbon tax, which is lower when the host country enjoys large co-benefits from mitigation. Formulas are derived for the incremental cost price and the opportunity cost price. The opportunity cost price is always larger than the incremental cost price, as the host country under the opportunity cost price must use additional, more expensive mitigation policies to reach its mitigation target. The paper discusses additional costs and barriers that deter hosts from adopting carbon taxes. These arguments can help to explain why few low-income countries have so far adopted carbon taxes, and why the necessary compensation for tax adoption may exceed theoretical assessments.	en
dc.identifier	http://documents.worldbank.org/curated/en/352481603127763989/Supporting-Carbon-Tax-Implementation-in-Developing-Countries-through-Results-Based-Payments-for-Emissions-Reductions
dc.identifier.doi	10.1596/1813-9450-9443
dc.identifier.uri	https://hdl.handle.net/10986/34651
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper;No. 9443
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo
dc.subject	CARBON TAX
dc.subject	EMISSION REDUCTION
dc.subject	GREENHOUSE GAS EMISSIONS
dc.subject	CLIMATE CHANGE MITIGATION
dc.subject	PARTNERSHIP FOR MARKET READINESS
dc.title	Supporting Carbon Tax Implementation in Developing Countries through Results-Based Payments for Emissions Reductions	en
dc.type	Working Paper	en
dc.type	Document de travail	fr
dc.type	Documento de trabajo	es
dspace.entity.type	Publication
okr.crossref.title	Supporting Carbon Tax Implementation in Developing Countries through Results-Based Payments for Emissions Reductions
okr.date.disclosure	2020-10-19
okr.doctype	Publications & Research
okr.doctype	Publications & Research::Policy Research Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/352481603127763989/Supporting-Carbon-Tax-Implementation-in-Developing-Countries-through-Results-Based-Payments-for-Emissions-Reductions
okr.guid	352481603127763989
okr.identifier.doi	10.1596/1813-9450-9443
okr.identifier.doi	https://doi.org/10.1596/1813-9450-9443
okr.identifier.externaldocumentum	090224b087ed58a5_1_0
okr.identifier.internaldocumentum	32497445
okr.identifier.report	WPS9443
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/352481603127763989/pdf/Supporting-Carbon-Tax-Implementation-in-Developing-Countries-through-Results-Based-Payments-for-Emissions-Reductions.pdf	en
okr.statistics.combined	2219
okr.statistics.dr	352481603127763989
okr.statistics.drstats	1150
okr.topic	Environment::Carbon Policy and Trading
okr.topic	Environment::Climate Change Mitigation and Green House Gases
okr.topic	Environment::Environmental Economics & Policies
okr.topic	Macroeconomics and Economic Growth::Taxation & Subsidies
okr.unit	Development Research Group, Development Economics
relation.isAuthorOfPublication	c9d5219c-9076-5386-b0d2-03bab820c61d
relation.isAuthorOfPublication.latestForDiscovery	c9d5219c-9076-5386-b0d2-03bab820c61d
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery	26e071dc-b0bf-409c-b982-df2970295c87

Publication: Supporting Carbon Tax Implementation in Developing Countries through Results-Based Payments for Emissions Reductions

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Supporting Carbon Tax Implementation in Developing Countries through Results-Based Payments for Emissions Reductions