Green fiscal reform for a just energy transition in Latin America

Michael Jakob (), Rafael Soria, Carlos Trinidad, Ottmar Edenhofer, Céline Bak, Daniel Bouille, Daniel Buira, Hernan Carlino, Veronica Gutman, Christian Hübner, Brigitte Knopf, André Lucena, Luan Santos, Andrew Scott, Jan Steckel, Kanako Tanaka, Adrien Vogt-Schilb and Koichi Yamada

No 2018-86, Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Green fiscal reforms would contribute to climate change mitigation, increase the economic efficiency of national tax systems and provide additional public revenues. Some countries in Latin America have already taken first steps towards green fiscal reforms. This paper provides an overview of the major challenges for the successful implementation of such reforms and discusses how they could be overcome. The authors first discuss the role of country-specific economic and political enabling conditions that need to be in place for successful implementation for green successful reforms. Second, they emphasize the importance of comprehensive reform plans that include all relevant ministries and agencies and are well-aligned with other policy objectives, such as energy security and industrial development. Third, they highlight how appropriate sequencing and gradualism could lower implementation costs and hence increase the political feasibility of green fiscal reforms. Finally, the authors analyze the potential impacts of green fiscal reforms on the distribution of income and discuss transfer schemes that could avoid adverse outcomes for the poorest parts of the population. They use these four dimensions to illustrate why recent reform efforts in selected Latin American countries have been successful or have failed, respectively.

Keywords: green fiscal reform; energy subsidies; Latin America; multi-objective climate policy; sequencing; distribution (search for similar items in EconPapers)
JEL-codes: E62 H23 N16 Q48 Q54 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-ene, nep-env, nep-his, nep-mac and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.economics-ejournal.org/economics/discussionpapers/2018-86
https://www.econstor.eu/bitstream/10419/191893/1/1048357481.pdf (application/pdf)

Related works:
Journal Article: Green fiscal reform for a just energy transition in Latin America (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201886

Access Statistics for this paper

More papers in Economics Discussion Papers from Kiel Institute for the World Economy (IfW Kiel) Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().