Carbon Pricing | IMF Blog

Countries Are Signing Up for Sizeable Carbon Prices

Versions in: عربي Arabic, 中文 Chinese, Français French, 日本語 Japanese, Русский Russian, and Español Spanish

With global leaders set to start signing the landmark Paris Agreement on climate change tomorrow—April 22 is Earth Day—at the United Nations in New York, countries will embark on the potentially difficult and contentious issue of setting prices for greenhouse gas emissions, most importantly carbon dioxide (CO₂). Our back of the envelope calculations show that most large emitters will need to charge anywhere from $50 to $100 per ton or more (in current prices) by 2030 to meet their commitments to reduce carbon emissions.

Continue reading “Countries Are Signing Up for Sizeable Carbon Prices” »

By IMFBlog| April 21st, 2016|climate change, health, International Monetary Fund, oil, technology, trade|0 Comments

Climate Change: How To Price Paris

by Vitor Gaspar, Michael Keen, and Ian Parry

(Versions in عربي, 中文, Español, and Français)

The Paris Agreement on Climate Change is a historic diplomatic achievement. Climate change is a global problem. Many believed that global problem solving would prove elusive: the benefits of cutting emissions arise globally while the costs of doing so are borne nationally, so national self-interest would prevent a meaningful agreement. Paris proves otherwise—creating a commonality of purpose at the global level. Continue reading “Climate Change: How To Price Paris” »

By IMFBlog| January 11th, 2016|Advanced Economies, climate change, Europe, Fiscal, Fiscal policy, IMF, International Monetary Fund|0 Comments

The Top Ten Blogs of 2014

by iMFdirect

As 2014 draws to a close, we thought you might like a look back at the most read blogs of the year. These are the headlines and ideas that caught your eyes and the list is based on readership. We thought we’d pull them all together for you in one quick read.

Wishing you a wonky & worldy 2015 from all of us at iMFdirect.

Continue reading “The Top Ten Blogs of 2014” »

By IMFBlog| December 31st, 2014|Advanced Economies, Asia, Economic outlook, Economic research, Emerging Markets, Employment, Europe, Finance, Financial Crisis, Fiscal, Government, growth, IMF, Inequality, International Monetary Fund, Investment, Latin America, Middle East, recession, Uncategorized, unemployment|0 Comments

Carbon Pricing: Good for You, Good for the Planet

By Ian Parry

The time has come to end hand wringing on climate strategy, particularly controlling carbon dioxide (CO₂) emissions. We need an approach that builds on national self-interest and spurs a race to the top in low-carbon energy solutions. Our findings here at the IMF—that carbon pricing is practical, raises revenue that permits tax reductions in other areas, and is often in countries’ own interests—should strike a chord at the United Nations Climate Summit in New York next week. Let me explain how.

Ever since the 1992 Earth Summit, policymakers have struggled to agree on an international regime for controlling emissions, but with limited success. Presently, only around 12 percent of global emissions are covered by pricing programs, such as taxes on the carbon content of fossil fuels or permit trading programs that put a price on emissions. Reducing CO₂ emissions is widely seen as a classic “free-rider” problem. Why should an individual country suffer the cost of cutting its emissions when the benefits largely accrue to other countries and, given the long life of emissions and the gradual adjustment of the climate system, future generations?

Continue reading “Carbon Pricing: Good for You, Good for the Planet” »

By IMFBlog| September 17th, 2014|Advanced Economies, Economic research, Global Governance, Globalization, IMF, International Monetary Fund, Politics, Reform, Uncategorized|0 Comments

Sins of Emission and Omission in Durban

As we slide into another year of tough economic times, it’s easy to understand why policymakers are preoccupied with the next few weeks. But they also need to be thinking about the longer term issue of leaving the planet in reasonable shape for future generations. Without serious efforts to reduce greenhouse gases, scientists predict that by the end of this century global temperatures could be 2.5 to 6.0 degrees (celsius) higher than a couple of hundred years ago. That could mean more heatwaves, more droughts, higher sea levels, more violent storms—and so on. When you start to think about the potential impact of, say, droughts on the livelihood of farmers, especially in poorer countries… well, you get the point. While some progress was made in the latest round of United Nations’ climate change negotiations in Durban, South Africa, we saw two major omissions. There was little progress on either carbon pricing or, related, financing for action against climate change. And there was not enough recognition of what economics has to offer to help tackle the problems.

By IMFBlog| January 9th, 2012|Advanced Economies, Emerging Markets, IMF, International Monetary Fund, Low-income countries, Multilateral Cooperation|4 Comments