International Environmental Taxation in the Absence of Sovereignty
Summary:
Traditional public finance theory may be applied to the internalization of international environmental externalities. The policy constraint imposed by the absence of sovereign international government may be partially overcome through international environmental agreements. Instruments such as cost sharing, found in existing agreements, are generally unsophisticated. Two proposals entailing improved instruments are considered: (a) an international carbon tax, and (b) a global commons trust fund financed by earmarked excise taxes or charges. Political realities appear to preclude the early adoption of sophisticated international environmental taxes, but modest improvements in the design and implementation of existing instruments may be feasible.
Series:
Working Paper No. 1992/104
Subject:
Carbon tax Environment Environmental taxes Excises Extra-budgetary funds Greenhouse gas emissions Public financial management (PFM) Taxes
English
Publication Date:
December 1, 1992
ISBN/ISSN:
9781451947847/1018-5941
Stock No:
WPIEA1041992
Pages:
37
Please address any questions about this title to publications@imf.org