Assessing Carbon Emissions in Pakistani Households: Implications for Carbon Tax Policy - Technical Note

Publication:
Assessing Carbon Emissions in Pakistani Households: Implications for Carbon Tax Policy - Technical Note

dc.contributor.author	World Bank
dc.date.accessioned	2025-08-06T16:42:13Z
dc.date.available	2025-08-06T16:42:13Z
dc.date.issued	2025-08-06
dc.description.abstract	As Pakistan pursues its climate commitments, carbon pricing offers a market-based tool to align economic incentives with environmental goals. This note examines Pakistan's carbon emission profile, current emission levels, and their projected increases as the country transitions to a higher middle-income status. Using the latest household survey available, it imputes carbon content to the consumption basket of Pakistani households and discusses the direct, indirect, and behavioral channels affected by carbon taxation. The note argues that taxing carbon should be part of a comprehensive policy addressing the actual carbon price in the economy, which includes phasing out of energy subsidies that lower the cost of carbon emissions —at a high fiscal cost. Carbon pricing emerges as a policy with a potential "double dividend" that can simultaneously reduce emissions and generate substantial fiscal resources for development initiatives or tax burden reduction elsewhere in the economy. However, implementation success hinges on addressing distributional effects, as analysis shows lower-income households would primarily experience impacts through indirect price increases in essential goods rather than through direct energy costs. The note emphasizes the importance of considering these channels when designing policies to compensate vulnerable households impacted by carbon taxation.	en
dc.identifier	https://openknowledge.worldbank.org/entities/publication/db2d8ff0-a269-4abb-8398-421e38ca9e67
dc.identifier.doi	https://doi.org/10.1596/43547
dc.identifier.uri	https://hdl.handle.net/10986/43547
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	CARBON EMISSIONS
dc.subject	CARBON TAX POLICY
dc.subject	CARBON PRICES
dc.subject	CARBON TAXATION
dc.subject	COST OF CARBON EMISSION
dc.subject	LOW INCOME HOUSEHOLDS
dc.title	Assessing Carbon Emissions in Pakistani Households	en
dc.title.subtitle	Implications for Carbon Tax Policy - Technical Note	en
dc.type	Working Paper
dspace.entity.type	Publication
okr.date.disclosure	2025-08-06
okr.date.doiregistration	2025-08-08T02:11:16.561434Z
okr.date.lastmodified	2025-06-29T18:05:10Z	en
okr.doctype	Report
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/099062625083527602
okr.guid	099062625083527602
okr.identifier.docmid	P180706-e3949efa-b6a5-4e6a-8ca0-2ffb54b56207
okr.identifier.externaldocumentum	40025394
okr.identifier.internaldocumentum	40025394
okr.identifier.report	202600
okr.import.id	8152
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	https://documents.worldbank.org/curated/en/099062625083527602/pdf/P180706-e3949efa-b6a5-4e6a-8ca0-2ffb54b56207.pdf	en
okr.region.administrative	Middle East and North Africa
okr.region.country	Pakistan
okr.sector	FY17 - Other Public Administration
okr.sector	Public Administration
okr.theme	FY17 - Fiscal Policy,FY17 - Environmental policies and institutions,FY17 - Fiscal sustainability,FY17 - Macroeconomic & Structural Policy Modelling,FY17 - Debt Management,FY17 - Public Finance Management,FY17 - Economic Growth and Planning,FY17 - Adaptation,FY17 - Climate change,FY17 - Trade,FY17 - Mitigation,FY17 - Trade Policy,FY17 - Public Expenditure Policy
okr.theme	FY17 - Environment and Natural Resource Management,FY17 - Economic Policy,FY17 - Public Sector Management
okr.topic	Environment::Carbon Policy and Trading
okr.topic	Environment::Climate Change Impacts
okr.topic	Environment::Climate Change Mitigation and Green House Gases
okr.volume	1