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The fiscal implications of stringent climate policy.
- Source :
- Economic Analysis & Policy; Dec2023, Vol. 80, p495-504, 10p
- Publication Year :
- 2023
-
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. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03135926
- Volume :
- 80
- Database :
- Supplemental Index
- Journal :
- Economic Analysis & Policy
- Publication Type :
- Academic Journal
- Accession number :
- 174301321
- Full Text :
- https://doi.org/10.1016/j.eap.2023.09.004