The Distributional Impact of a Carbon Tax in Asia and the Pacific
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Summary:
While a carbon tax is widely acknowledged as an efficient policy to mitigate climate change, adoption has lagged. Part of the challenge resides in the distributional implications of a carbon tax and a belief that it tends to be regressive. Even when not regressive, poor households could be hurt by a carbon tax, particularly in countries that rely heavily on carbon-intensive energy sources. Using household surveys, we study how a carbon tax may affect households in the Asia Pacific region, the main source of CO2 emissions. We document a wide range of country-specific policies that could be implemented to compensate households, reduce inequality, and build support for adoption.
Series:
Working Paper No. 2022/116
Subject:
Carbon tax Consumption Household consumption Income Income inequality National accounts Taxes
Frequency:
regular
English
Publication Date:
June 10, 2022
ISBN/ISSN:
9798400212383/1018-5941
Stock No:
WPIEA2022116
Pages:
50
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