IMF Working Papers

The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications

By Baoping Shang

June 25, 2021

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Format: Chicago

Baoping Shang. The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications, (USA: International Monetary Fund, 2021) accessed December 22, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Addressing the poverty and distributional impacts of carbon pricing reforms is critical for the success of ambitious actions in the fight against climate change. This paper uses a simple framework to systematically review the channels through which carbon pricing can potentially affect poverty and inequality. It finds that the channels differ in important ways along several dimensions. The paper also identifies several key gaps in the current literature and discusses some considerations on how policy designs could take into account the attributes of the channels in mitigating the impacts of carbon pricing reforms on households.

Publication Details

  • Pages:

    32

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Working Paper No. 2021/172

  • Stock No:

    WPIEA2021172

  • ISBN:

    9781513573397

  • ISSN:

    1018-5941