Equity effects of economic instruments for greenhouse gas abatement
- National Economic Research Associates, Inc., Cambridge, MA (United States)
This paper discusses the equity effects of using economic instruments--such as a carbon tax or carbon emissions trading program--to regulate greenhouse gas emissions. Determining these equity effects is more complicated than assessing overall costs and benefits, although some of the same issues arise. Among the key issues are the following: (1) benchmark for evaluating impacts of economic instruments (status quo or regulatory program that achieves the same emission reductions); (2) use of any government revenues collected, which are transfers overall but affect gains and losses; (3) time period (long-term or transitional impacts); and (4) groupings (income groups, sectors or regions). Empirical studies suggest that a national tax is regressive in the US but may be less so in other countries. The equity impacts of an international carbon tax or emissions trading program differ greatly depending upon the specific elements. The paper considers options to compensate or mitigate adverse effects to income groups, sectors, or regions of the world. Although impossible to avoid all losses to every group, it would be possible to avoid major equity effects if carbon taxes or carbon trading programs were used to control global warming.
- OSTI ID:
- 182847
- Report Number(s):
- CONF-940426-; ISBN 0-923204-11-3; TRN: IM9608%%212
- Resource Relation:
- Conference: International conference on global climate change: science, policy and mitigation strategies, Phoenix, AZ (United States), 5-8 Apr 1994; Other Information: PBD: 1994; Related Information: Is Part Of Global climate change: Science, policy, and mitigation strategies. Proceedings of the Air and Waste Management Association international specialty conference; Mathai, C.V. [ed.] [Arizona Public Service Co., Phoenix, AZ (United States)]; Stensland, G. [ed.] [Illinois State Water Survey, Champaign, IL (United States)]; PB: 1117 p.
- Country of Publication:
- United States
- Language:
- English
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