{
  "title": "Fiscal Policy Options to Accelerate Emissions Reductions in Belgium",
  "publication": "Selected Issues Papers, March 2, 2023",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2023/03/03/fiscal-policy-options-to-accelerate-emissions-reductions-in-belgium-belgium-belgium-530525",
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  "summary": "Belgium’s current policies fall short of achieving its climate targets and promoting emissions reductions at limited economic costs.",
  "sections": [
    {
      "heading": "Summary of main finding",
      "content": "- Belgium’s current policies fall short of achieving its climate targets and promoting emissions reductions at limited economic costs.\n- Domestic carbon pricing should form the centerpiece of an emissions reduction package because:\n  - Pricing promotes mitigation at the lowest economic cost.\n  - Pricing can be phased in as international energy prices fall.\n  - Pricing generates revenue to compensate vulnerable households and reduce taxes on productive activities."
    },
    {
      "heading": "Policy recommendations",
      "content": "- Center policy on domestic carbon pricing to achieve cost-effective mitigation and revenue generation.\n- Use revenue from carbon pricing to:\n  - Compensate vulnerable households.\n  - Reduce taxes on productive activities.\n- Reinforce carbon pricing with sectoral policies where appropriate:\n  - Implement subsidy-tax schemes to promote low emissions vehicles.\n  - Ensure sectoral policies complement carbon pricing and regional efforts.\n- Reform social protection to be more efficient and environmentally friendly:\n  - Switch from energy subsidies to income-based support."
    },
    {
      "heading": "EU- and regional-level actions",
      "content": "- Promote dialogue at the EU-level to:\n  - Harmonize ETS prices.\n  - Include all sectors under a single trading scheme."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: International organization, Monetary policy\n- Keywords: climate, distributional effects, environmental economics, Environmental taxes and subsidies, fiscal policy\n\n---\n\n Content in this bundle\n\n- Sipea2023017\n  - Sipea2023017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Sipea2023017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2023/03/03/fiscal-policy-options-to-accelerate-emissions-reductions-in-belgium-belgium-belgium-530525"
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    "Authors: Nate Vernon-Lin",
    "Published: March 2, 2023",
    "Series: Selected Issues Papers",
    "Belgium’s current policies fall short of achieving its climate targets and promoting emissions reductions at limited economic costs.",
    "Domestic carbon pricing should form the centerpiece of an emissions reduction package because:",
    "Center policy on domestic carbon pricing to achieve cost-effective mitigation and revenue generation.",
    "Use revenue from carbon pricing to:",
    "Reinforce carbon pricing with sectoral policies where appropriate:",
    "Reform social protection to be more efficient and environmentally friendly:",
    "Promote dialogue at the EU-level to:",
    "Subject: International organization, Monetary policy",
    "Keywords: climate, distributional effects, environmental economics, Environmental taxes and subsidies, fiscal policy",
    "**Sipea2023017**"
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