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Fighting global warming with carbon pricing: how it works, field experiments and elements for the Belgian economy

Koen Burggraeve, Jan De Mulder and Grégory de Walque
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Koen Burggraeve: National Bank of Belgium
Jan De Mulder: National Bank of Belgium

Economic Review, 2020, issue iv, 99-130

Abstract: Economists believe that introducing carbon pricing is the best policy for effectively tackling global warming in a decentralised manner. However, its implementation is hampered by the concerns that it raises for household purchasing power and business competitiveness. Applied examples nevertheless show that such criticism is not justified if the proceeds from a carbon tax are wisely redistributed.

Date: 2020
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Handle: RePEc:nbb:ecrart:y:2020:m:december:i:iv:p:99-130