Publication: What is the Role of Carbon Taxes in Climate Change Mitigation?
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2008-07
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2012-08-13
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This note argues that a carbon tax system is more practical to implement, monitor and enforce than tradable permit-based approaches to global climate-change action. It suggests that a sensible design will be an upstream carbon tax on the fossil fuel supply chain, which can also include other major non-(carbon monoxide) CO2 greenhouse gases (GHGs). While risks such as fiscal cushioning exist, a tax-based system will be more transparent and offer the appropriate incentives for participation and compliance.
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“Aldy, Joseph; Ley, Eduardo; Parry, Ian. 2008. What is the Role of Carbon Taxes in Climate Change Mitigation?. PREM Notes; No. 2. © World Bank. http://hdl.handle.net/10986/11147 License: CC BY 3.0 IGO.”
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