scholarly journals Fairness, effectiveness, and needs satisfaction: new options for designing climate policies

2021 ◽  
Vol 16 (12) ◽  
pp. 124026
Author(s):  
Milena Büchs ◽  
Diana Ivanova ◽  
Sylke V Schnepf
Keyword(s):  
Motor Fuel ◽  
Design Stage ◽  
Carbon Taxes ◽  
Energy Poverty ◽  
Emission Reductions ◽  
Goods And Services ◽  
Climate Policies ◽  
Percentage Points ◽  
Needs Satisfaction ◽  
Distributional Impacts

Abstract Financial compensations are often proposed to address regressive distributional impacts of carbon taxes. While financial compensations have shown to benefit vulnerable groups distributionally, little is known about their impacts on emission reduction or needs satisfaction. A potential problem with cash compensations is that if households spend this money back into the economy while no additional decarbonisation policies are implemented, emission reductions that arose from the tax may at least partly be reversed. In this letter, we compare the emission savings and impacts on fuel and transport poverty of two compensation options for carbon taxes in 27 European countries. The first option consists of equal per capita rebates for home energy and motor fuel taxes. The second option is the provision of universal green vouchers for renewable electricity and public transport, supported by additional investments in green infrastructures to meet increased demand for such green consumption. Results show that the first option of tax rebates only supports small emission reductions. In contrast, universal green vouchers with expanded green infrastructures would reduce home energy emissions by 92.3 MtCO2e or 13.4%, and motor fuel emissions by 177.5 MtCO2e or 23.8%. If green vouchers and infrastructure were provided without a prior tax, emission savings would be slightly lower compared to the ‘tax and voucher’ scheme, but fuel and transport poverty would drop by 4.1 and 2.2 percentage points, respectively. In contrast, taxes with rebates would increase fuel and transport poverty by 4.1 and 1.8 percentage points. These findings demonstrate that it is important to take environmental and energy poverty impacts of compensations for unfair distributional impacts of climate policies into account at the design stage. Such compensation measures can achieve higher emission reductions and reduce energy poverty if they involve an expansion of the provision of green goods and services, and if everyone is given fair access to these goods and services.

Comments: Carbon Tariffs - Fair Incentives for Change?

2021 ◽  
Vol 73 (05) ◽  
pp. 8-8
Author(s):  
Pam Boschee
Keyword(s):  
Climate Change ◽  
Climate Policy ◽  
Global Climate ◽  
Carbon Price ◽  
Carbon Leakage ◽  
Carbon Taxes ◽  
Trading Systems ◽  
Climate Policies ◽  
The Eu ◽  
Carbon Tariff

Carbon credits, carbon taxes, and emissions trading systems are familiar terms in discussions about limiting global warming, the Paris Agreement, and net-zero emissions goals. A more recent addition to the glossary of climate policy is “carbon tariff.” While the concept is not new, it recently surfaced in nascent policymaking in the EU. In 2019, European Commission President Ursula von der Leyen proposed a “carbon border adjustment mechanism (CBAM)” as part of a proposed green deal. In March, the European Parliament adopted a resolution on a World Trade Organization (WTO)-compatible CBAM. A carbon tariff, or the EU’s CBAM, is a tax applied to carbon-intensive imports. Countries that have pledged to be more ambitious in reducing emissions—and in some cases have implemented binding targets—may impose carbon costs on their own businesses. Being eyed now are cross-border or overseas businesses that make products in countries in which no costs are imposed for emissions, resulting in cheaper carbon-intensive goods. Those products are exported to the countries aiming for reduced emissions. The concern lies in the risk of locally made goods becoming unfairly disadvantaged against competitors that are not taking similar steps to deal with climate change. A carbon tariff is being considered to level the playing field: local businesses in countries applying a tariff can better compete as climate policies evolve and are adopted around the world. Complying with WTO rules to ensure fair treatment, the CBAM will be imposed only on high-emitting industries that compete directly with local industries paying a carbon price. In the short term, these are likely to be steel, chemicals, fertilizers, and cement. The Parliament’s statement introduced another term to the glossary of climate policy: carbon leakage. “To raise global climate ambition and prevent ‘carbon leakage,’ the EU must place a carbon price on imports from less climate-ambitious countries.” It refers to the situation that may occur if businesses were to transfer production to other countries with laxer emission constraints to avoid costs related to climate policies. This could lead to an increase in total emissions in the higher-emitting countries. “The resolution underlines that the EU’s increased ambition on climate change must not lead to carbon leakage as global climate efforts will not benefit if EU production is just moved to non-EU countries that have less ambitious emissions rules,” the Parliament said. It also emphasized the tariff “must not be misused to further protectionism.” A member of the environment committee, Yannick Jadot, said, “It is a major political and democratic test for the EU, which must stop being naïve and impose the same carbon price on products, whether they are produced in or outside the EU, to ensure the most polluting sectors also take part in fighting climate change and innovate towards zero carbon. This will give us the best chance of remaining below the 1.5°C warming limit, whilst also pushing our trading partners to be equally ambitious in order to enter the EU market.” The Commission is expected to present a legislative proposal on a CBAM in the second quarter of 2021 as part of the European Green Deal.

scholarly journals Posconflicto colombiano y sus efectos económicos

2016 ◽  
Vol 17 (27) ◽  
pp. 23 ◽  
Author(s):  
María Ruiz Diaz ◽  
John Galeano Raquejo ◽  
Edwin Gil Mateus
Keyword(s):  
Direct Investment ◽  
Armed Forces ◽  
Negotiation Process ◽  
Country Risk ◽  
Internal Conflict ◽  
Goods And Services ◽  
Peace Negotiations ◽  
Post Conflict ◽  
Percentage Points ◽  
The Government

<p align="center">Resumen</p><p> </p><p>Las negociaciones de paz del gobierno con las denominadas Fuerzas Armadas Revolucionarias de Colombia (FARC) podrían tener efectos sobre la economía colombiana. Por ello se esbozan  tres escenarios –pesimista, neutral y optimista– en los que se distingan efectos a nivel financiero y de comercio internacional en los cinco años posteriores a la finalización del proceso de negociación. Partiendo del estudio de casos en cinco países que enfrentaron la terminación de un conflicto interno, por vía militar o diplomática, se analizaron variables sobre las cuales se podría prever un efecto, teniendo en cuenta el posconflicto y el desenlace de las negociaciones de paz entre la guerrilla y el Gobierno. Se concluye que en los cinco años posteriores a la firma del acuerdo, la balanza de bienes y servicios crecería entre el 3% y  6%; el comercio lo haría entre 10% y 15%; el Riesgo País se incrementaría alrededor de 4 puntos; la Inversión Extranjera Directa (IED) aumentaría entre 40% y 50%; el crecimiento del PIB anual estaría 1 ó 2 puntos porcentuales más alto que el actual y el gasto militar disminuiría al 10% como porcentaje del PIB.</p><p> </p><p align="center">Abstract</p><p> </p><p>The government peace negotiations with the so-called Revolutionary Armed Forces of Colombia (FARC) could have an impact on the Colombian economy, being relevant to analyze such effects. Therefore three possible scenarios to financial and international trade level for a period of five years, compared to the possible outcomes of the negotiation process are outlined. From case studies in five countries faced the completion of an internal conflict, military or diplomatic channels, variables were analyzed on which could provide an effect, taking into account the post-conflict and outcome of peace negotiations between the guerrillas and the government. It is concluded that in the five years after signing the agreement, the balance of goods and services would grow between 3% and 6%; would trade between 10% and 15% greater; country risk would rise about 4 points; Foreign Direct Investment (FDI) would increase between 40% and 50%; annual GDP growth would be 1 or 2 percentage points higher than the current and military spending would decrease 10% as a percentage of GDP.</p>

scholarly journals Motor fuel taxes and the environmental protection

2011 ◽  
Vol 2 (1) ◽  
pp. 29-48
Author(s):  
Michał Ptak
Keyword(s):  
Climate Change Policy ◽  
Motor Fuel ◽  
Diesel Oil ◽  
External Costs ◽  
The European Union ◽  
Carbon Taxes ◽  
Change Policy ◽  
Environmental Objectives ◽  
Motor Fuels ◽  
Fuel Taxes

Motor fuel taxes are primarily revenue-raising taxes. However, due to high fuel consumption these taxes can be quite an efficient source of general budget revenue in many countries. It seems that the taxes on motor fuels may also be useful instruments for environmental policy or climate change policy. Environmental objectives can be achieved through change of behavior of drivers. The paper presents theoretical basis for taxes levied on motor fuels. Attention is paid to the problem of external costs of transport and internalization of external costs by applying taxes on motor fuels. The article also contains a review of the European Union countries experience with taxes levied on motor fuels (such as: petrol, diesel oil, liquid petroleum gas and compressed natural gas). The author discusses the structure of fuel taxation and tax rates in different countries. Attention is also paid to the fuel taxes which are principally intended to change behavior, not to raise revenue (particularly carbon taxes) and to the ‘environmentally friendly’ tax differentiations. The paper is based on the available literature and reports published by various organizations (Eurostat, the OECD).

scholarly journals GREEN TRANSITIONS AND THE PREVENTION OF ENVIRONMENTAL DISASTERS: MARKET-BASED VS. COMMAND-AND-CONTROL POLICIES

2019 ◽  
Vol 24 (7) ◽  
pp. 1861-1880 ◽  
Author(s):  
Francesco Lamperti ◽  
Mauro Napoletano ◽  
Andrea Roventini
Keyword(s):  
Technical Change ◽  
Path Dependence ◽  
Command And Control ◽  
Empirical Support ◽  
Clean Energy ◽  
Carbon Taxes ◽  
Directed Technical Change ◽  
Environmental Disasters ◽  
Climate Policies ◽  
And Control

The paper compares the effects of market-based (M-B) and command-and-control (C&C) climate policies on the direction of technical change and the prevention of environmental disasters. Drawing on a model of endogenous growth and directed technical change, we show that M-B policies (carbon taxes and subsidies toward clean sectors) suffer from path dependence and exhibit bounded window of opportunities: delays in their implementation make them ineffective both in redirecting technical change, (i.e. triggering a transition toward clean energy) and in avoiding environmental catastrophes. On the contrary, we find that C&C interventions are favored by path dependence and guarantee policy effectiveness irrespectively of the timing of their introduction. As the hypothesis of path dependence in technological change has received vast empirical support and it is a key feature of many models of growth, we argue that C&C policies should be seen as a valuable and non-equivalent alternative to M-B interventions.

The Distributional Impact of Climate Policy

2011 ◽  
Vol 10 (2) ◽  
Author(s):  
Dale W Jorgenson ◽  
Richard Goettle ◽  
Mun S Ho ◽  
Daniel T Slesnick ◽  
Peter J Wilcoxen
Keyword(s):  
Climate Policy ◽  
Leisure Time ◽  
Economic Welfare ◽  
Demographic Groups ◽  
Goods And Services ◽  
Wide Range ◽  
Different Types ◽  
Distributional Impact ◽  
The Impact ◽  
Distributional Impacts

Abstract The purpose of this paper is to present a new methodology for evaluating the distributional impacts of climate policy. This methodology builds directly on the framework introduced by Jorgenson, Slesnick, and Wilcoxen (1992), but generalizes it by including leisure time, as well as goods and services, in the measure of household welfare. We provide detailed results for 244 different types of households distinguished by demographic characteristics. In addition, we evaluate the overall impact of a cap-and-trade system, as represented in Energy Modeling Forum 22. While there is a wide range of outcomes for different demographic groups, the impact on economic welfare is regressive and generally negative but relatively small.

scholarly journals Reducing energy poverty through carbon tax revenues in South Africa

2017 ◽  
Vol 28 (3) ◽  
pp. 12 ◽  
Author(s):  
Harald Winkler
Keyword(s):  
South Africa ◽  
Indoor Air Pollution ◽  
Carbon Tax ◽  
Tax Revenue ◽  
Liquefied Petroleum Gas ◽  
Carbon Taxes ◽  
Energy Poverty ◽  
Tax Revenues ◽  
Poor Households ◽  
Rooftop Solar

How much can poverty be reduced through carbon tax revenue? This study analyses specific programmes, with carbon taxes generating revenues and equivalent spending on programmes to reduce energy poverty. The twin challenges of development and climate change could be addressed in this way in South Africa. A simple spreadsheet model was used to estimate revenue available from a carbon tax, given different tax rates and emission projections. Four programmes to reduce energy poverty were quantified: electrification, extended free basic energy, scaling-up sustainable housing, and subsidising rooftop solar for poor households. Matching carbon revenue with equivalent expenditure, the study found that applying all carbon revenue to a single programme could fund the national budget for electrification. Hundreds of thousands, and up to tens of millions, of households could receive free energy in the form of 5 kg of liquefied petroleum gas every month, as well as better houses that are warmer in winter and with fewer health impacts from indoor air pollution. Carbon revenues could fund at least a few hundred thousand improved homes, or subsidies for at least 100 000 rooftop solar systems per year to poor households. Institutional and other constraints would have to be addressed. Carbon revenue could fully fund all four programmes combined into an integrated strategy, in three of the four scenarios. The results suggested that full funding could be available from 2019 or from 2025, dependent on carbon tax revenue scenario. Energy poverty can be reduced by expenditure of carbon tax revenues.

CARBON TAXES VERSUS CAP AND TRADE: A CRITICAL REVIEW

2013 ◽  
Vol 04 (03) ◽  
pp. 1350010 ◽  
Author(s):  
LAWRENCE H. GOULDER ◽  
ANDREW R. SCHEIN
Keyword(s):  
Critical Review ◽  
Carbon Tax ◽  
Price Volatility ◽  
Carbon Taxes ◽  
Cap And Trade ◽  
Price Ceiling ◽  
Climate Policies ◽  
The Face ◽  
Prior Literature ◽  
Price Floor

We examine the relative attractions of a carbon tax, a "pure" cap-and-trade system, and a "hybrid" option (a cap-and-trade system with a price ceiling and/or price floor). We show that the various options are equivalent along more dimensions than often are recognized. In addition, we bring out important dimensions along which the approaches have very different impacts, including some dimensions that have received little attention in prior literature. Although no option dominates the others, a key finding is that exogenous emissions pricing (whether through a carbon tax or through the hybrid option) has a number of important attractions over pure cap and trade. Beyond helping prevent price volatility and reducing expected policy errors in the face of uncertainties, exogenous pricing helps avoid problematic interactions with other climate policies and helps avoid potential wealth transfers to oil-exporting countries.

Measuring Global Imbalances

2010 ◽  
Vol 213 ◽  
pp. F19-F21
Keyword(s):  
Hong Kong ◽  
Financial Crisis ◽  
World Trade ◽  
Global Imbalances ◽  
Import Penetration ◽  
Member States ◽  
New Member States ◽  
Goods And Services ◽  
Percentage Points

The volume of world trade in goods and services remained some 6 per cent below its pre-crisis peak in the first quarter of 2010, but has rebounded by nearly 10 per cent since the trough reached in the second quarter of 2009. Figure 8 shows the ratio of world trade to world GDP, which plummeted by 3.2 percentage points at the height of the financial crisis. This unparalleled collapse in world trade reflected a decline in import penetration ratios (the ratio of the volume of imports of goods and services to GDP) in all the major economies, with the sharpest falls in several of the EU's new member states, as well as Hong Kong and some oil exporting economies such as Indonesia.

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