Policy Options for Climate Mitigation: Emissions Trading Schemes in Asia-Pacific
IMF Working Papers, July 19, 2024
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- Policy Options for Climate Mitigation: Emissions Trading Schemes in Asia-Pacific
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Bibliographic details
- Authors: Margaux MacDonald, Ian W.H. Parry
- Published: July 19, 2024
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400282188.001
Overview
- Large reductions in global emissions are needed for the world to be on track to meet global temperature goals.
- Asia-Pacific countries have a critical role in emissions reduction given their large and rising share in global emissions.
- The paper discusses: main opportunities and behavioral responses for reducing emissions; commonly used mitigation instruments; key design issues for carbon pricing with a focus on emissions trading schemes (ETS); measures to overcome obstacles to carbon pricing; experiences with carbon pricing relevant for Asia-Pacific economies; and complementary policy reforms.
Key findings
- Carbon pricing, including ETSs, can be the centerpiece of climate mitigation strategies for most countries, particularly if ETSs are designed to mimic some of the administrative and economic attractions of carbon taxes and implemented appropriately.
- Effective mitigation requires integrating carbon pricing with other instruments and reforms, including public investment, fuel tax reform, green industrial policies, and supporting reforms to the energy sector.
Carbon pricing and ETS design (focus)
- The paper considers key design issues for carbon pricing, with a focus on emissions trading schemes (ETS).
- It emphasizes designing ETSs to capture administrative and economic attractions of carbon taxes where feasible.
Measures to overcome obstacles to carbon pricing
- The paper describes measures to overcome obstacles to carbon pricing and discusses experiences with carbon pricing relevant for Asia-Pacific economies.
Complementary policy reforms
- Complementary reforms covered include:
- Reinforcing mitigation instruments
- Public investment
- Fuel tax reform
- Green industrial policies
- Supporting reforms to the energy sector
Publication and metadata
- Authors: Margaux MacDonald, Ian W.H. Parry
- Date: July 19, 2024
- Series: Working Paper No. 2024/155
- Volume: 2024
- Issue: 155
- Pages: 32
- DOI: https://doi.org/10.5089/9798400282188.001
- Stock No: WPIEA2024155
- ISBN: 9798400282188
- ISSN: 1018-5941
- Subjects: Carbon tax, Environment, Greenhouse gas emissions, Labor, Non-wage benefits, Taxes
- Keywords: Asia, Asia and Pacific, Asia-Pacific country, Carbon tax, climate, climate mitigation strategy, Emissions trading scheme, Global, Greenhouse gas emissions, mitigation instrument, mitigation opportunity, Non-wage benefits, policy reform, transmission company
IMF Working Papers — Policy Options for Climate Mitigation: Emissions Trading Schemes in Asia-Pacific (Working Paper No. 2024/155), July 19, 2024.
Content in this bundle
- Working Paper