Aligning climate policy with finance ministers' G20 agenda

Edenhofer, Ottmar; Knopf, Brigitte; Bak, Céline; Bhattacharya, Amar

doi:10.1038/nclimate3331

Cited by 32 publications

(8 citation statements)

References 5 publications

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“…The main proposed policy instrument has been carbon pricing, which could be implemented either through the introduction of a tax on the carbon content of goods and services, or the creation of a cap-and-trade system of emission allowances. 32,33 Other market-based instruments, such as the introduction of subsidies for clean technologies and a phasing-out of fossil fuel subsidies, also follow a similar logic.…”

Section: Central Banks and Climate Changementioning

confidence: 99%

Climate change challenges for central banks and financial regulators

Campiglio

Dafermos

Monnin³

et al. 2018

Nature Clim Change

492

240

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Section: Central Banks and Climate Changementioning

confidence: 99%

Climate change challenges for central banks and financial regulators

Campiglio

Dafermos

Monnin³

et al. 2018

Nature Clim Change

492

240

View full text Add to dashboard Cite

show abstract

“…There is already some research on the public economics of climate change that examines the fiscal properties of carbon pricing (de Mooij et al 2012 ; Edenhofer et al 2017 ; Jones et al 2013 ; Siegmeier et al 2018 ). Pigouvian taxation has also been studied in optimal taxation frameworks (for an excellent overview, see Aronsson and Sjögren 2018 ), where most attention has been given to the double dividend hypothesis (Goulder et al 2016 ) and distributional effects with respect to different incomes (e.g., Jacobs and van der Ploeg 2019 ).…”

Section: Remaining Research Gaps and Research Agendamentioning

confidence: 99%

Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare

Edenhofer

Franks

Kalkuhl

2021

Int Tax Public Finance

Self Cite

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The year 2020 marks the centennial of the publication of Arthur Cecil Pigou’s magnum opus The Economics of Welfare. Pigou’s pricing principles have had an enduring influence on the academic debate, with a widespread consensus having emerged among economists that Pigouvian taxes or subsidies are theoretically desirable, but politically infeasible. In this article, we revisit Pigou’s contribution and argue that this consensus is somewhat spurious, particularly in two ways: (1) Economists are too quick to ignore the theoretical problems and subtleties that Pigouvian pricing still faces; (2) The wholesale skepticism concerning the political viability of Pigouvian pricing is at odds with its recent practical achievements. These two points are made by, first, outlining the theoretical and political challenges that include uncertainty about the social cost of carbon, the unclear relationship between the cost–benefit and cost-effectiveness approaches, distributional concerns, fragmented ministerial responsibilities, an unstable tax base, commitment problems, lack of acceptance and trust between government and citizens as well as incomplete international cooperation. Secondly, we discuss the recent political success of Pigouvian pricing, as evidenced by the German government’s 2019 climate policy reform and the EU’s Green Deal. We conclude by presenting a research agenda for addressing the remaining barriers that need to be overcome to make Pigouvian pricing a common political practice.

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“…Green fiscal policies are effective instruments to induce the uptake of green technologies in Brazil [23], and they can help overcome economic barriers for adopting cleaner production technologies [24]. These policies also have the potential to deliver multiple socioeconomic dividends when properly designed, such as reduced tax distortions, increased demand and investment levels, and sound fiscal policy [25][26][27][28][29][30][31].…”

Section: Introductionmentioning

confidence: 99%

Developing Green: A Case for the Brazilian Manufacturing Industry

Gramkow

Anger-Kraavi

2019

Sustainability

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The recent IPCC Special Report on global warming of 1.5 °C emphasizes that rapid action to reduce greenhouse gas (GHG) emissions is vital to achieving the climate mitigation goals of the Paris Agreement. The most-needed substantial upscaling of investments in GHG mitigation options in all sectors, and particularly in manufacturing sectors, can be an opportunity for a green economic development leap in developing countries. Here, we use the Brazilian manufacturing sectors as an example to explore a transformation of its economy while contributing to the Paris targets. Projections of Brazil’s economic futures with and without a portfolio of fiscal policies to induce low carbon investments are produced up to 2030 (end year of Brazil’s Nationally Determined Contribution—NDC), by employing the large-scale macro econometric Energy-Environment-Economy Model, E3ME. Our findings highlight that the correct mix of green stimulus can help modernize and decarbonize the Brazilian manufacturing sectors and allow the country’s economy to grow faster (by up to 0.42% compared to baseline) while its carbon dioxide (CO2) emissions decline (by up to 14.5% in relation to baseline). Investment levels increase, thereby strengthening exports’ competitiveness and alleviating external constraints to long-term economic growth in net terms.

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Aligning climate policy with finance ministers' G20 agenda

Cited by 32 publications

References 5 publications

Climate change challenges for central banks and financial regulators

Climate change challenges for central banks and financial regulators

Pigou in the 21st Century: a tribute on the occasion of the 100th anniversary of the publication of The Economics of Welfare

Developing Green: A Case for the Brazilian Manufacturing Industry

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