It Is Fair To Act Now! The Distributional Impact Of A Carbon Tax Policy In Indonesia

Arief Yusuf

No pb2008101, EEPSEA Policy Brief from Economy and Environment Program for Southeast Asia (EEPSEA)

Abstract: It is widely acknowledged that the three dimensions of sustainable development economic, social, and environmental-are crucial, inseparable and inter- related. In many cases, however, their goals come into conflict with one another. This conflict often arises in the case of environment-related policies, the issue of climate change mitigation being no exception. Climate change mitigation policies to reduce carbon emissions from the energy sector by way of measures such as introducing a carbon tax have been widely known to be regressive i.e., the burden is borne more by lower income rather than higher income households, thereby making income distribution less equitable or fair. An expectation of such an adverse distributive effect may even prevent the policy from being implemented in the first place.

Keywords: Carbon tax; Climate change; Indonesia (search for similar items in EconPapers)
JEL-codes: Q54 Q58 (search for similar items in EconPapers)
Date: 2008-10, Revised 2008-10
New Economics Papers: this item is included in nep-ene, nep-env and nep-sea
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