Distributional Impacts of Carbon Pricing on Households

Distributional Impacts of Carbon Pricing on Households

Carbon pricing policies that are aligned with the Paris Agreement objectives will have positive and negative socio-economic impacts on society. Impacts of unabated climate change are expected to disrupt economic development and disproportionally af...

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Bibliographic Details
Main Author: Carbon Pricing Leadership Coalition
Format: Brief
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
CARBON PRICING
CARBON POLICY
CLIMATE CHANGE
CLIMATE CHANGE MITIGATION
POVERTY REDUCTION
INEQUALITY
GENDER INEQUALITY
HOUSEHOLD WELFARE
SOCIOECONOMIC IMPACT
DISTRIBUTIONAL IMPACT
EMISSIONS TRADING
GREENHOUSE GAS EMISSIONS
SUBSIDY REFORM
TAXATION INCIDENCE
Online Access:http://documents.worldbank.org/curated/en/817211588598030616/Distributional-Impacts-of-Carbon-Pricing-on-Households
http://hdl.handle.net/10986/33686
id okr-10986-33686
recordtype oai_dc
spelling okr-10986-336862021-05-25T10:54:44Z Distributional Impacts of Carbon Pricing on Households Carbon Pricing Leadership Coalition CARBON PRICING CARBON POLICY CLIMATE CHANGE CLIMATE CHANGE MITIGATION POVERTY REDUCTION INEQUALITY GENDER INEQUALITY HOUSEHOLD WELFARE SOCIOECONOMIC IMPACT DISTRIBUTIONAL IMPACT EMISSIONS TRADING GREENHOUSE GAS EMISSIONS SUBSIDY REFORM TAXATION INCIDENCE Carbon pricing policies that are aligned with the Paris Agreement objectives will have positive and negative socio-economic impacts on society. Impacts of unabated climate change are expected to disrupt economic development and disproportionally affect the poorest parts of the population, especially in lower-income countries. In response, through the Paris Agreement, the international community pledged to limit global warming to well below 2 degrees Celsius above pre-industrial levels. Carbon pricing has been highlighted as a crucial prerequisite for effective climate change mitigation. Carbon pricing is essentially a payment required to emit one ton of CO2 into the atmosphere. This makes production or consumption of carbon-intensive goods and services more expensive. While carbon pricing policies aim to shift behavior towards low-carbon alternatives, they can also result in unintended distributional effects for households, especially when lower-cost alternatives are not available. The negative distributional impacts can be offset through specific policy design choices, but efforts to do so should not undermine the goal of incentivizing emissions reduction. 2020-05-04T18:58:05Z 2020-05-04T18:58:05Z 2020-05-01 Brief http://documents.worldbank.org/curated/en/817211588598030616/Distributional-Impacts-of-Carbon-Pricing-on-Households http://hdl.handle.net/10986/33686 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic CARBON PRICING
CARBON POLICY
CLIMATE CHANGE
CLIMATE CHANGE MITIGATION
POVERTY REDUCTION
INEQUALITY
GENDER INEQUALITY
HOUSEHOLD WELFARE
SOCIOECONOMIC IMPACT
DISTRIBUTIONAL IMPACT
EMISSIONS TRADING
GREENHOUSE GAS EMISSIONS
SUBSIDY REFORM
TAXATION INCIDENCE
spellingShingle CARBON PRICING
CARBON POLICY
CLIMATE CHANGE
CLIMATE CHANGE MITIGATION
POVERTY REDUCTION
INEQUALITY
GENDER INEQUALITY
HOUSEHOLD WELFARE
SOCIOECONOMIC IMPACT
DISTRIBUTIONAL IMPACT
EMISSIONS TRADING
GREENHOUSE GAS EMISSIONS
SUBSIDY REFORM
TAXATION INCIDENCE
Carbon Pricing Leadership Coalition
Distributional Impacts of Carbon Pricing on Households
description Carbon pricing policies that are aligned with the Paris Agreement objectives will have positive and negative socio-economic impacts on society. Impacts of unabated climate change are expected to disrupt economic development and disproportionally affect the poorest parts of the population, especially in lower-income countries. In response, through the Paris Agreement, the international community pledged to limit global warming to well below 2 degrees Celsius above pre-industrial levels. Carbon pricing has been highlighted as a crucial prerequisite for effective climate change mitigation. Carbon pricing is essentially a payment required to emit one ton of CO2 into the atmosphere. This makes production or consumption of carbon-intensive goods and services more expensive. While carbon pricing policies aim to shift behavior towards low-carbon alternatives, they can also result in unintended distributional effects for households, especially when lower-cost alternatives are not available. The negative distributional impacts can be offset through specific policy design choices, but efforts to do so should not undermine the goal of incentivizing emissions reduction.
format Brief
author Carbon Pricing Leadership Coalition
author_facet Carbon Pricing Leadership Coalition
author_sort Carbon Pricing Leadership Coalition
title Distributional Impacts of Carbon Pricing on Households
title_short Distributional Impacts of Carbon Pricing on Households
title_full Distributional Impacts of Carbon Pricing on Households
title_fullStr Distributional Impacts of Carbon Pricing on Households
title_full_unstemmed Distributional Impacts of Carbon Pricing on Households
title_sort distributional impacts of carbon pricing on households
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/817211588598030616/Distributional-Impacts-of-Carbon-Pricing-on-Households
http://hdl.handle.net/10986/33686
_version_ 1764479298265153536

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