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Exploring Carbon Pricing in Developing Countries: A Macroeconomic Analysis in Ethiopia

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dc.contributor.authorTelaye, Andualem
dc.contributor.authorBenitez, Pablo
dc.contributor.authorTamru, Seneshaw
dc.contributor.authorMedhin, Haileselassie
dc.contributor.authorToman, Michael
dc.date.accessioned2019-05-21T17:24:48Z
dc.date.available2019-05-21T17:24:48Z
dc.date.issued2019-05
dc.description.abstractThis study uses a computable general equilibrium model to analyze various policy scenarios for a carbon tax on greenhouse gas emissions from petroleum fuels and kerosene in Ethiopia. The carbon tax starts at $5 per ton of carbon dioxide in 2018 and rises to $30 per ton in 2030. Different scenarios examine the impacts with revenue recycling through a uniform sales tax reduction, reduction of labor income tax, reduction of business income tax, direct transfer back to households, and use by the government to reduce debt. Because petroleum fuels and kerosene are a relatively small part of the Ethiopian economy, the carbon tax has quite small impacts on overall economic activity while having a notable proportionate impact on greenhouse gas emissions from these energy sources, depending on the recycling scenario. The carbon tax can raise significant revenue -- up to $800 million per year by 2030. The impacts on the poor through increased cost of living are not that large, since the share of the poor in total use of petroleum fuels and kerosene is small. In terms of income effects through employment changes, urban households tend to experience more impacts than rural households, but the results also depend on the household skill level and the revenue recycling scenario.en
dc.identifierhttp://documents.worldbank.org/curated/en/536761558371853162/Exploring-Carbon-Pricing-in-Developing-Countries-A-Macroeconomic-Analysis-in-Ethiopia
dc.identifier.doi10.1596/1813-9450-8860
dc.identifier.urihttps://hdl.handle.net/10986/31738
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 8860
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectCARBON TAX
dc.subjectCARBON PRICING
dc.subjectCLIMATE CHANGE
dc.subjectCLIMATE CHANGE MITIGATION
dc.subjectDISTRIBUTIONAL IMPACT
dc.subjectCGE MODEL
dc.subjectGREENHOUSE GAS EMISSIONS
dc.titleExploring Carbon Pricing in Developing Countriesen
dc.title.subtitleA Macroeconomic Analysis in Ethiopiaen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleExploring Carbon Pricing in Developing Countries: A Macroeconomic Analysis in Ethiopia
okr.date.disclosure2019-05-20
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/536761558371853162/Exploring-Carbon-Pricing-in-Developing-Countries-A-Macroeconomic-Analysis-in-Ethiopia
okr.guid536761558371853162
okr.identifier.doi10.1596/1813-9450-8860
okr.identifier.externaldocumentum090224b086cca972_1_0
okr.identifier.internaldocumentum31089537
okr.identifier.reportWPS8860
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/536761558371853162/pdf/Exploring-Carbon-Pricing-in-Developing-Countries-A-Macroeconomic-Analysis-in-Ethiopia.pdfen
okr.region.administrativeAfrica
okr.region.countryEthiopia
okr.statistics.combined2530
okr.statistics.dr536761558371853162
okr.statistics.drstats1682
okr.topicEnvironment::Carbon Policy and Trading
okr.topicEnvironment::Climate Change Mitigation and Green House Gases
okr.topicEnvironment::Environmental Economics & Policies
okr.topicPoverty Reduction::Inequality
okr.topicPoverty Reduction::Poverty, Environment and Development
okr.unitDevelopment Research Group, Development Economics
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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