People are most likely to support climate policies that they consider to be fair. With the recent rise in alarmist rhetoric around the ‘cost’ of net-zero and the need to ensure a just low-carbon transition, Josh Burke explores the case for recycling the proceeds of a carbon tax back to households. Read more
Carbon pricing should be part of nothing less than a significant and broad package of post-COVID fiscal reforms, say Esin Serin and Josh Burke, as they outline what these reforms should look like. Read more
This report argues that carbon pricing alongside complementary policies can help Taiwan reduce its greenhouse gas emissions in a fair and cost-effective way. It assesses the options and identifies a clear path to carbon pricing in Taiwan. Read more
The fact that a carbon tax is an environmentally and economically efficient instrument for reducing emissions is often highlighted, but the equity story is also of importance. This paper addresses the question of the distributional burden of a carbon tax across different income groups and the role played by income inequality. Read more
This paper aims to estimate the short-run impacts of air travel reductions due to COVID-19, and explores the potential for policy measures to curb demand and reduce carbon dioxide emissions beyond the lifetime of the pandemic with minimal impacts on welfare. Read more
This brief argues that once the immediate rescue has been secured and countries move towards recovery from COVID-19, carefully implementing carbon pricing while reducing fossil fuel subsidies should be at the core of any stimulus package. Read more
Careful implementation of carbon pricing with reductions in fossil fuel subsidies can raise revenues to support the COVID-19 recovery and make society less vulnerable to future climate, ecological or public health risks, according to a new policy brief published today (May 15th). Read more
This paper assesses the effectiveness and interactions of different policies aimed at reducing carbon dioxide emissions, using a macro-financial framework. The research aims to provide central banks and similar institutions with the tools to contribute to climate change mitigation and demonstrates the importance of including these institutions in the push to reduce global emission levels. Read more
The UK government should consider a broader-based carbon tax that is distributionally fair and consistent with net-zero greenhouse gas emissions... Read more
This study explores the distributional impacts of a net-zero-consistent carbon price across different household types and income deciles in the UK; and examines which combination of interventions may reduce carbon consumption and still be progressive. The authors find that it is possible to design a revenue recycling scheme that leaves fuel-poor and low-income households better off while driving the transition to net-zero emissions in the UK by 2050. Read more