Fiscal Policy Options to Accelerate Emissions Reductions in Belgium Belgium: Belgium

March 2, 2023

Preview Citation

Format: Chicago

Nate Vernon-Lin. Fiscal Policy Options to Accelerate Emissions Reductions in Belgium Belgium: Belgium, (USA: International Monetary Fund, 2023) accessed December 13, 2024

Summary

Belgium’s current policies fall short of achieving its climate targets and promoting emissions reductions at limited economic costs. We recommend that domestic carbon pricing form the centerpiece of an emissions reduction package, as pricing promotes mitigation at the lowest economic cost, can be phased in as international energy prices fall, and generates revenue to compensate vulnerable households and reduce taxes on productive activities. Sectoral policies, such as subsidy-tax schemes to promote low emissions vehicles, should reinforce carbon pricing and regional efforts, while the social protection system can be made more efficient and environmentally friendly by switching from energy subsidies to income-based support. Belgium should also promote dialogue at the EU-level to harmonize ETS prices and include all sectors under a single trading scheme.

Subject: International organization, Monetary policy

Keywords: Climate, Distributional effects, Environmental economics, Environmental taxes and subsidies, Fiscal policy

Publication Details

Pages:

41
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/017
Stock No:

SIPEA2023017
ISBN:

9798400235795
ISSN:

2958-7875

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