Publication:
Economic and Distributional Impacts of Selected Carbon Pricing Policies for the Arab Republic of Egypt

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dc.contributor.authorTimilsina, Govinda R.
dc.contributor.authorSebsibie, Samuel
dc.date.accessioned2024-06-04T20:46:38Z
dc.date.available2024-06-04T20:46:38Z
dc.date.issued2024-06-04
dc.description.abstractThe Arab Republic of Egypt is the 24th largest carbon dioxide emitter from fossil fuel combustion in the world and the third largest emitter in the Middle East and North Africa region after the Islamic Republic of Iran and Saudi Arabia. Egypt has set a target of reducing one-third of its national greenhouse gas emissions under the Paris Climate Agreement. Pricing instruments, such as the removal of existing fossil fuel subsidies and the introduction of a carbon tax, help the country to achieve its emission reduction targets. However, the economic, social, and environmental impacts of such policies are unknown. This study develops a computable general equilibrium model for Egypt to investigate the economic, distributional, and climate change mitigation effects of fossil fuel subsidy removal and introduction of a carbon tax under alternative schemes to recycle the saved subsidies and carbon tax revenues. Four revenue recycling schemes are considered: public debt reduction, equal or progressive cash transfers to households, and cutting corporate income taxes. The numerical results indicate that removing existing petroleum subsidies and introducing of a carbon tax of LE 600 per ton of carbon dioxide would reduce national carbon dioxide emissions by up to 11 percent without significantly affecting the economy. When the saved subsidies and carbon tax revenues are given back to households through cash transfers, the income of poorer households would rise relative to that of richer households, ensuring that this revenue recycling scheme is progressive. The policies affect commodity prices and sectoral output not only in different magnitudes, but also in different directions across the revenue recycling schemes.en
dc.identifierhttp://documents.worldbank.org/curated/en/099430006042429299/IDU13edd46ce13af614f4a1a76e193fcc82b1034
dc.identifier.doi10.1596/1813-9450-10791
dc.identifier.urihttps://hdl.handle.net/10986/41657
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesPolicy Research Working Paper; 10791
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo/
dc.subjectCLIMATE CHANGE
dc.subjectCARBON PRICING
dc.subjectFOSSIL FUEL SUBSIDY
dc.subjectCARBON TAX
dc.subjectGENERAL EQUILIBRIUM MODEL
dc.subjectDISTRIBUTION IMPACTS
dc.subjectEGYPT
dc.subjectCLIMATE ACTION
dc.subjectSDG 13
dc.titleEconomic and Distributional Impacts of Selected Carbon Pricing Policies for the Arab Republic of Egypten
dc.typeWorking Paper
dspace.entity.typePublication
okr.crossref.titleEconomic and Distributional Impacts of Selected Carbon Pricing Policies for the Arab Republic of Egypt
okr.date.disclosure2024-06-04
okr.date.lastmodified2024-06-04T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099430006042429299/IDU13edd46ce13af614f4a1a76e193fcc82b1034
okr.guid099430006042429299
okr.identifier.docmidIDU-3edd46ce-3af6-4f4a-a76e-93fcc82b1034
okr.identifier.doi10.1596/1813-9450-10791
okr.identifier.doihttps://doi.org/10.1596/1813-9450-10791
okr.identifier.externaldocumentum34333122
okr.identifier.internaldocumentum34333122
okr.identifier.reportWPS10791
okr.import.id4375
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099430006042429299/pdf/IDU13edd46ce13af614f4a1a76e193fcc82b1034.pdfen
okr.region.administrativeMiddle East and North Africa
okr.region.countryEgypt, Arab Republic of
okr.topicEnvironment::Adaptation to Climate Change
okr.topicEnvironment::Carbon Policy and Trading
okr.topicEnvironment::Climate Change Impacts
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.unitDEC-Sustainability & Infrastruct (DECSI)
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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