The fiscal implications of stringent climate policy
| dc.contributor.author | Tol,Richard S.J. | |
| dc.date.accessioned | 2024-05-16T06:23:37Z | |
| dc.date.available | 2024-05-16T06:23:37Z | |
| dc.date.issued | 2023-09 | |
| dc.description | Much has been written about how to reduce greenhouse gas emissions and how much that would cost (see Riahi et al., 2022 for a review of recent studies) but there is little about the implications for the public finances. This is an odd omission. Rapid emission reduction requires a major overhaul of the energy sector and energy-intensive activities (IEA, 2021). | |
| dc.description.abstract | Stringent climate policy compatible with the targets of the 2015 Paris Agreement would pose a substantial fiscal challenge. Reducing carbon dioxide emissions by 95% or more by 2050 would raise 7% (1%–17%) of GDP in carbon tax revenue, half of current, global tax revenue. Revenues are relatively larger in poorer regions. Subsidies for carbon dioxide sequestration would amount to 6.6% (0.3–7.1%) of GDP. These numbers are conservative as they were estimated using models that assume first-best climate policy implementation and ignore the costs of raising revenue. The fiscal challenge rapidly shrinks if emission targets are relaxed. keywords : Climate policy, carbon dioxide, global tax revenue. | en |
| dc.identifier.citation | Tol, R. S. (2023). The fiscal implications of stringent climate policy. Economic Analysis and Policy, 80, 495-504. | |
| dc.identifier.doi | https://doi.org/10.1016/j.eap.2023.09.004 | |
| dc.identifier.uri | https://dspace.adu.ac.ae/handle/1/5322 | |
| dc.language.iso | en | |
| dc.publisher | Elsevier | |
| dc.title | The fiscal implications of stringent climate policy | |
| dc.type | Article |