The political economy of carbon pricing: a panel analysis

Geoffroy Dolphin, Michael Pollitt and David M Newbery

Oxford Economic Papers, 2020, vol. 72, issue 2, 472-500

Abstract: In virtually all jurisdictions that explicitly price carbon, its average (emissions-weighted) price remains low. Our analysis focuses on the political economy of its introduction as well as its stringency in an international panel of national and North American subnational jurisdictions. Results suggest that political economy factors primarily affected the former and that policy stringency is a highly persistent process. This has two important policy implications. First, successful passage of carbon pricing legislation will either come with contemporaneous compensation of incumbent, CO2-intensive, sectors or occur after their relative weakening. Second, if political economy constraints continue to prevail, climate change mitigation strategies will require multiple instruments.

JEL-codes: H23 Q58 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (34)

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Related works:
Working Paper: The political economy of carbon pricing: a panel analysis (2016)
Working Paper: The Political Economy of Carbon Pricing: a Panel Analysis (2016)
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