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Although the existing literature identifies a fuel levy imposed by means of a global agreement as the most efficient policy for carbon pricing in the maritime sector, scholars and policy makers debate the possibility for regional measures to be introduced in case a global agreement cannot be achieved. This debate has highlighted several economic, legal, and political challenges that the implementation of an efficient and effective regional scheme would have to face. This paper compares the relative performance of various regional measures for carbon pricing based on the following criteria: jurisdictional basis, data availability, environmental effectiveness and avoidance strategies, impact on competitiveness, differentiation for developing countries, and incentives for reaching a global agreement. The main finding is that, if carefully designed, a cargo-based measure that covers the emissions released throughout the whole voyage to the cargo destination presents various advantages compared with other carbon pricing schemes. These advantages have been largely ignored in the literature.
Carbon Pricing --- CBDRRC --- Climate Change Policy and Regulation --- Data Availability --- Economic Adjustment and Lending --- Energy --- Energy Production and Transportation --- Environment --- Environmental Effectiveness --- Global Environment Facility --- Governance --- Industry --- Judicial Systems Reform --- Jurisdiction --- Law and Development --- Legal Products --- Legal Reform --- Macroeconomics and Economic Growth --- Maritime Emissions --- Public Sector Development --- Regional Measures --- Science and Technology Development --- Social Development --- Social Policy --- Technology Industry --- Technology Innovation
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This paper takes a dive into the deep literature on the carbon tax accumulated through active and continuous research over the past 30 years. It also presents the ongoing debate and implementation of the carbon tax in practice. The paper discusses the evolution of the carbon tax literature, classifying it by the issues investigated and methodology used for the investigation. It finds that the literature enlightens four key issues: (i) economic impacts, (ii) choices for revenue recycling, (iii) distributional implications, and (iv) competitiveness and border tax adjustment. Quantitative analysis, especially computable general equilibrium modeling, is the main method employed in the literature. The study shows that potential adverse economic impacts and competitiveness concerns are the main impediments to the introduction of the carbon tax. Extensive examinations of carbon tax issues at the global, regional, and country levels have led to innovative measures to address these concerns. While the carbon tax was mainly a subject of academic discussion until few years back, it has generated good attention for policy makers, particularly after the Paris Agreement on climate change, and is being considered as one of the main market instruments to address global climate change. Although several important issues related to the carbon tax have been well researched, its potential interactions with poverty and shared prosperity are yet to be investigated.
Border Tax Adjustment --- Carbon Pricing --- Carbon Tax --- Climate Change --- Climate Change and Environment --- Climate Change and Health --- Climate Change Mitigation and Green House Gases --- Distributional Impacts --- Economic Impacts --- Energy --- Energy and Environment --- Energy Demand --- Environment --- Health, Nutrition and Population --- Revenue Recycling --- Science and Technology Development --- Science of Climate Change
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