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A fair and progressive carbon price for a sustainable economy.
- Source :
-
Journal of Environmental Management . Feb2022, Vol. 303, pN.PAG-N.PAG. 1p. - Publication Year :
- 2022
-
Abstract
- The principle of "common but differentiated responsibility", as a key concept of the United Nations Framework Convention on Climate Change (UNFCCC), acknowledges the conditions for a generally acceptable and differentiated pricing mechanism on carbon emissions. With reference to this principle, carbon price determination has become a necessary instrument for sustainable policies. Considering the development gaps and the historical responsibility of the OECD's countries, a single carbon price would raise a major issue of equity between "developed" and "developing" countries. Although from a climate perspective each molecule of CO 2 produces the same level of damage despite the nature or the location of the activity generating the emissions, all CO 2 emissions are not on an equal footing. Indeed, some are necessary to improve the lives of people in "developing" countries when others can be considered not indispensable, especially beyond a certain level of development. In this policy paper, we explain how the price of carbon should be fixed according to a reference price depending on the Human Development Index (HDI) and CO 2 emissions per capita. The HDI criterion enables to integrate progressivity into taxation while distinguishing what is essential from what is not. By taking a reference price based on the HDI, countries with low HDIs should pay a lower carbon price. However, with same HDI levels, countries with higher CO 2 emissions should pay a penalty on the reference price. Our policy paper analyses the benefits of a differentiated and progressive carbon pricing mechanism to facilitate intergovernmental cooperation for a more sustainable economy. • This policy paper analyses the benefits of a differentiated and progressive carbon pricing. • The article proposes carbon prices based on the Human Development Index (HDI) and C 0 2 emissions per capita. • The proposed mechanism is an efficient mean to facilitate intergovernmental cooperation and modify the global energy mix for a sustainable growth. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 03014797
- Volume :
- 303
- Database :
- Academic Search Index
- Journal :
- Journal of Environmental Management
- Publication Type :
- Academic Journal
- Accession number :
- 154243269
- Full Text :
- https://doi.org/10.1016/j.jenvman.2021.113935