The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications
IMF Working Papers, June 25, 2021
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- The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications
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Bibliographic details
- Authors: Baoping Shang
- Published: June 25, 2021
- Series: IMF Working Papers
Overview and purpose
- Author: Baoping Shang
- Date: June 25, 2021
- Objective: Use a simple framework to systematically review the channels through which carbon pricing can potentially affect poverty and inequality, identify key gaps in the literature, and discuss considerations for policy design to mitigate household impacts.
Core findings
- Addressing poverty and distributional impacts of carbon pricing reforms is critical for the success of ambitious climate actions.
- The paper finds that the channels through which carbon pricing affects poverty and inequality differ in important ways along several dimensions.
- The literature contains several key gaps related to the assessment of these channels and their distributional consequences.
Framework and channels (qualitative)
- Presents a simple, systematic framework to classify and review channels linking carbon pricing to household outcomes.
- Emphasizes heterogeneity across channels (attributes, mechanisms, and affected populations) rather than a single uniform effect on poverty or inequality.
Policy implications and design considerations
- Policy designs should take into account the attributes of the channels to mitigate the impacts of carbon pricing reforms on households.
- Considerations include tailoring mitigation measures to channel-specific characteristics and affected groups to preserve the political feasibility and equity of carbon pricing.
Publication metadata and access
- Publication type: IMF Working Paper (Working Paper No. 2021/172)
- Pages: 32
- Stock No: WPIEA2021172
- ISBN: 9781513573397
- ISSN: 1018-5941
- Format referenced: Chicago citation example provided
The Poverty and Distributional Impacts of Carbon Pricing: Channels and Policy Implications — Baoping Shang, June 25, 2021. https://www.imf.org/en/publications/wp/issues/2021/06/25/the-poverty-and-distributional-impacts-of-carbon-pricing-channels-and-policy-implications-50222
Content in this bundle
- Working Paper