International Environmental Taxation in the Absence of Sovereignty
IMF Working Papers, December 1, 1992
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- International Environmental Taxation in the Absence of Sovereignty
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Bibliographic details
- Authors: Bernard P. Herber
- Published: December 1, 1992
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451947847.001
Key findings and analysis
- 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.
- 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.
Proposals evaluated
- An international carbon tax.
- A global commons trust fund financed by earmarked excise taxes or charges.
Policy recommendations and implications
- Seek partial compensation for the lack of an international sovereign through improved international environmental agreements.
- Consider modest, politically feasible improvements to existing instruments (for example, better-designed cost-sharing mechanisms and earmarked excise/charge arrangements) as intermediate steps toward more sophisticated international environmental taxes.
- Recognize political constraints that limit near-term adoption of comprehensive international environmental taxation; prioritize incremental design and implementation improvements.
Subject tags and keywords (as presented)
- Subject: Carbon tax, Environment, Environmental taxes, Excises, Extra-budgetary funds, Greenhouse gas emissions, Public financial management (PFM), Taxes
- Keywords: access price, administration system, Carbon tax, demand and supply, developing nation, Environmental taxes, excise tax, Excises, Extra-budgetary funds, Global, global warming, Greenhouse gas emissions, home-nation retention, nation B, nations signatory, net benefit, tax academic, tax administration, WP