Brunei Darussalam: Selected Issues

IMF Staff Country Reports, October 6, 2023

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Brunei Darussalam: Selected Issues

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Bibliographic details

• Published: October 6, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400257223.002

Overview

• The Selected Issues paper examines the potential role of carbon pricing for climate mitigation and revenue diversification strategy in Brunei Darussalam.
• Carbon pricing schemes are noted as gaining momentum worldwide, including in Asia.
• The paper provides guidance on the choice between carbon taxes and emissions trading systems and their design.
• The paper compares the impact of several mitigation policies modelled for illustration in Brunei Darussalam.

Key findings on mitigation and emissions

• All policies modeled reduce carbon dioxide emissions below baseline levels by 10-50 percent by 2030.
• Most of the emissions reductions come from the power generation and industry sectors.
• The policy yielding the most emissions reduction is the combination policy of:
  • a carbon tax reaching $50 per tonne by 2030, and
  • the fuel subsidies phase-out.
• The policy yielding the smallest emissions reduction is feebates.

Fiscal and revenue implications

• The modeled policies raise revenues equivalent to 1.6–7.2 percent of gross domestic product above the baseline in 2030.
• The combination policy (carbon tax reaching $50 per tonne by 2030 plus fuel subsidies phase-out) yields the most revenues.
• Feebates yield the smallest revenues among the policies modeled.

Policy guidance and comparisons

• The paper provides guidance on:
  • choosing between carbon taxes and emissions trading systems, and
  • the design features of carbon pricing schemes.
• The comparative modeling illustrates trade-offs between emissions reductions and revenue generation across policy options.

Brunei Darussalam: Selected Issues (IMF Staff Country Reports 2023, 347).

Content in this bundle

• Brunei Darussalam: Selected Issues; IMF Country Report No. 23/347; August 25, 2023
  • Brunei Darussalam: Selected Issues; IMF Country Report No. 23/347; August 25, 2023 (Markdown version)
  • Brunei Darussalam: Selected Issues; IMF Country Report No. 23/347; August 25, 2023 (PDF)