Publication:
Financing Low-Carbon Transitions through Carbon Pricing and Green Bonds

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dc.contributor.authorHeine, Dirk
dc.contributor.authorSemmler, Willi
dc.contributor.authorMazzucato, Mariana
dc.contributor.authorBraga, Joao Paulo
dc.contributor.authorFlaherty, Michael
dc.contributor.authorGevorkyan, Arkady
dc.contributor.authorHayde, Erin
dc.contributor.authorRadpour, Siavash
dc.date.accessioned2019-08-22T16:48:08Z
dc.date.available2019-08-22T16:48:08Z
dc.date.issued2019-08
dc.description.abstractTo finance the transition to low-carbon economies required to mitigate climate change, countries are increasingly using a combination of carbon pricing and green bonds. This paper studies the reasoning behind such policy mixes and the economic interaction effects that result from these different policy instruments. The paper models these interactions using an inter-temporal model that proposes burden sharing between current and future generations. The issuance of green bonds helps to enable immediate investment in climate change mitigation and adaptation, and the bonds would be repaid by future generations in such a way that those who benefit from reduced future environmental damage share in the burden of financing the mitigation efforts undertaken today. The paper examines the effects of combining green bonds and carbon pricing in a three-phase model and uses a numerical solution procedure that allows for finite-horizon solutions and phase changes. The paper shows that green bonds perform better when they are combined with carbon pricing. The proposed policy option appears to be politically more feasible than a green transition based only on carbon pricing, and it is more prudent for debt sustainability than a green transition that relies overly on green bonds.en
dc.identifierhttp://documents.worldbank.org/curated/en/808771566321852359/Financing-Low-Carbon-Transitions-through-Carbon-Pricing-and-Green-Bonds
dc.identifier.doi10.1596/1813-9450-8991
dc.identifier.urihttps://hdl.handle.net/10986/32316
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8991
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectGREEN BONDS
dc.subjectCARBON PRICING
dc.subjectCLIMATE CHANGE
dc.subjectINTERNATIONAL BURDEN SHARING
dc.subjectCARBON TAX
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectCLIMATE CHANGE ADAPTATION
dc.titleFinancing Low-Carbon Transitions through Carbon Pricing and Green Bondsen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleFinancing Low-Carbon Transitions through Carbon Pricing and Green Bonds
okr.date.disclosure2019-08-20
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/808771566321852359/Financing-Low-Carbon-Transitions-through-Carbon-Pricing-and-Green-Bonds
okr.guid808771566321852359
okr.identifier.doi10.1596/1813-9450-8991
okr.identifier.externaldocumentum090224b087005ccc_1_0
okr.identifier.internaldocumentum31348787
okr.identifier.reportWPS8991
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/808771566321852359/pdf/Financing-Low-Carbon-Transitions-through-Carbon-Pricing-and-Green-Bonds.pdfen
okr.statistics.combined10408
okr.statistics.dr808771566321852359
okr.statistics.drstats8035
okr.topicEnvironment::Adaptation to Climate Change
okr.topicEnvironment::Carbon Policy and Trading
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicEnvironment::Climate Change and Environment
okr.topicEnvironment::Green Issues
okr.unitMacroeconomics, Trade and Investment Global Practice
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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