Effects of carbon pricing and other climate policies on CO2 emissions

Emanuel Kohlscheen, Richhild Moessner and Elod Takats

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: In this study, we provide ex post empirical analysis of the effects of climate policies on carbon emissions at the aggregate national level, using a comprehensive database of 121 countries. Carbon taxes and emissions trading systems (ETS), and the overall stringency of climate policies are considered. We use dynamic panel regressions, controlling for macroeconomic factors (economic development, GDP growth, urbanisation and the energy mix). Higher carbon taxes and ETS prices reduce carbon emissions. An increase in carbon taxes by $10 per ton of CO2 reduces CO2 emissions per capita by 1.3% in the short run and by 4.6% in the long run.

Keywords: carbon emission trading system; carbon dioxide emissions; energy; carbon tax; climate policies (search for similar items in EconPapers)
JEL-codes: Q00 Q48 Q58 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2025-11-07
New Economics Papers: this item is included in nep-mac
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Published in National Institute Economic Review, 7, November, 2025. ISSN: 0027-9501

Downloads: (external link)
http://eprints.lse.ac.uk/130125/ Open access version. (application/pdf)

Related works:
Working Paper: Effects of carbon pricing and other climate policies on CO2 emissions (2024)
Working Paper: Effects of Carbon Pricing and Other Climate Policies on CO2 Emissions (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:130125

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