Chapter 3. Rationale for and Design of Fiscal Policy to “Get Energy Prices Right”
Author:
Ian W.H. Parry https://isni.org/isni/0000000404811396 International Monetary Fund

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Mr. Dirk Heine https://isni.org/isni/0000000404811396 International Monetary Fund

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Eliza Lis https://isni.org/isni/0000000404811396 International Monetary Fund

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Shanjun Li https://isni.org/isni/0000000404811396 International Monetary Fund

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Language:
English
Print Publication Date:
22 Jul 2014
Keywords:
BOOK; tax; environmental damage assessment; environmental damage; country; fuel tax; air pollution; fuel efficiency; corrective tax; value-added tax; Greenhouse gas emissions; Environmental taxes; Carbon tax; Fuel tax; Global

Abstract

The first part of this chapter discusses why environmental taxes or the equivalent emissions trading systems (ETSs) should be front and center in getting energy prices right, though design details, such as targeting the right base, exploiting the fiscal dividend, and establishing stable prices aligned to environmental damage, are critical. The second part discusses a variety of further design issues, including specifics for power generation and transportation fuels, the role of other instruments, overcoming challenges to price reform, and issues for low-income countries.

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Cover Getting Energy Prices Right
Getting Energy Prices Right
From Principle to Practice
ISBN:
9781484388570
Publication Date:
22 Jul 2014
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781484388570.071
Pages:
198