Publication: What is the Role of Carbon Taxes in Climate Change Mitigation?
Date
2008-07
ISSN
Published
2008-07
Author(s)
Aldy, Joseph
Ley, Eduardo
Parry, Ian
Abstract
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.
Citation
“Aldy, Joseph; Ley, Eduardo; Parry, Ian. 2008. What is the Role of Carbon Taxes in Climate Change Mitigation?. PREM Notes; No. 2. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/4f177640-f763-5e56-b37f-783c2708c4a4 License: CC BY 3.0 IGO.”