How Much Carbon Pricing is in Countries' Own Interests? The Critical Role of Co-Benefits

Ian Parry, Chandara Veung and Dirk Heine

No 5015, CESifo Working Paper Series from CESifo

Abstract: This paper calculates, for the top twenty emitting countries, how much pricing of carbon dioxide (CO2) emissions is in their own national interests due to domestic co-benefits. On average, nationally efficient prices are substantial, $57.5 per ton of CO2 (for year 2010), reflecting primarily health co-benefits from reduced air pollution at coal plants and, in some cases, reductions in automobile externalities (net of fuel taxes/subsidies). Pricing co-benefits reduces CO2 emissions from the top twenty emitters by 13.5 percent. However, co-benefits vary dramatically across countries (e.g., with population exposure to pollution) and differentiated pricing of CO2 emissions therefore yields higher net benefits (by 23 percent) than uniform pricing.

Keywords: carbon pricing; co-benefits; air pollution; fuel taxes; top twenty emitters (search for similar items in EconPapers)
JEL-codes: H23 Q48 Q54 Q58 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Related works:
Journal Article: HOW MUCH CARBON PRICING IS IN COUNTRIES’ OWN INTERESTS? THE CRITICAL ROLE OF CO-BENEFITS (2015)
Working Paper: How Much Carbon Pricing is in Countries’ Own Interests? The Critical Role of Co-Benefits (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_5015

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