This CESifo Working Paper by Ian Parry (IMF) provides some brief reflections on the international coordination of carbon pricing. The efficiency effects of carbon pricing depend on how it impacts distortions in fossil fuel markets, most notably from local air pollution externalities. By offsetting these distortions, carbon pricing may generate significant net economic benefits, so it is in countries own interests to implement carbon pricing unilaterally rather than waiting for others to act. Net benefits are further enhanced if carbon pricing is revenue neutral and broader taxes cause substantial avoidance and evasion. Flexible international pricing regimes, allowing countries with high domestic environmental benefits or fiscal needs to set higher carbon prices, are more efficient than globally uniform carbon prices.
September 22, 2017
Gas and Taxes: The Impact of Russia’s Tinkering with Upstream Gas Taxes on State Revenues and Decline Rates of Legacy Gas Fields (Oxford Energy)
October 31, 2017
October 18, 2017
April 28, 2017