This article from the Kiel Institute for the World Economy by Michael Jakob, Rafael Soria, Carlos Trinidad, Ottmar Edenhofer, Céline Bak, et. al. (2018), provides an overview of the major challenges for the successful implementation of green fiscal reforms in some countries in Latin America and discusses how they could be overcome. They discuss the role of country-specific economic and political enabling conditions and the importance of comprehensive reform plans that are well-aligned with other policy objectives. They highlight how appropriate sequencing and gradualism could lower implementation costs and increase the political feasibility of green fiscal reforms. They analyze the potential impacts of such reforms on distribution of income and discuss transfer schemes.

The article is available on the Economics-ejournal website.