A Simple Methodology for Calculating the Impact of a Carbon Tax
This technical note discusses how to implement a carbon tax at the national level. A carbon tax is a tax on fossil fuels, such as coal, natural gas, and crude oil (including fossil fuel products such as gasoline), that is imposed according to the c...
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| Format: | Working Paper |
| Language: | English |
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World Bank, Washington, DC
2020
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| Online Access: | http://documents.worldbank.org/curated/en/744681596643502208/A-Simple-Methodology-for-Calculating-the-Impact-of-a-Carbon-Tax http://hdl.handle.net/10986/34279 |
| Summary: | This technical note discusses how to
implement a carbon tax at the national level. A carbon tax
is a tax on fossil fuels, such as coal, natural gas, and
crude oil (including fossil fuel products such as gasoline),
that is imposed according to the carbon dioxide (CO2) each
fuel emits when burnt. The rate at which this CO2 is taxed
is known as the carbon tax rate or carbon price. This paper
uses simple numerical calculations to model the effect of a
carbon tax on fuel prices, fuel use, fiscal revenue, and CO2
emissions. A carbon tax would also have a substantial
beneficial effect on local air pollution, although this is
not explicitly modelled in this note. |
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