Policy Options for Climate Mitigation: Emissions Trading Schemes in Asia-Pacific

July 19, 2024

Preview Citation

Format: Chicago

Margaux MacDonald, and Ian W.H. Parry Policy Options for Climate Mitigation: Emissions Trading Schemes in Asia-Pacific, (USA: International Monetary Fund, 2024) accessed November 21, 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

Large reductions in global emissions are needed for the world to be on track to meet global temperature goals. Asia-Pacific countries have a critical role in emissions reduction given their large and rising share in global emissions. This paper discusses the main opportunities and behavioral responses for reducing emissions, and commonly used mitigation instruments. It then considers key design issues for carbon pricing, with a focus on emissions trading schemes (ETS), describes measures to overcome the obstacles to carbon pricing, and discusses experiences with carbon pricing relevant for Asia-Pacific economies. Lastly, the paper covers complementary policy reforms, including reinforcing mitigation instruments, public investment, fuel tax reform, green industrial policies, and supporting reforms to the energy sector. Carbon pricing, including ETSs can be the centerpiece of climate mitigation strategies for most countries, particularly if ETSs are designed to mimic some of the administrative and economic attractions of carbon taxes and implemented appropriately.

Subject: Carbon tax, Environment, Greenhouse gas emissions, Labor, Non-wage benefits, Taxes

Keywords: Asia, Asia and Pacific, Asia-Pacific country, Carbon tax, Climate, Climate mitigation strategy, Emissions trading scheme, Global, Greenhouse gas emissions, Mitigation instrument, Mitigation opportunity, Non-wage benefits, Policy reform, Transmission company

Publication Details

Pages:

32
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2024/155
Stock No:

WPIEA2024155
ISBN:

9798400282188
ISSN:

1018-5941

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