Calder, J., 2015, “Administration of a U.S. Carbon Tax,” in Implementing a U.S. Carbon Tax: Challenges and Debates, ed. by I. Parry, A. Morris, and R. Williams (New York: Routledge).
Lam, W. R. and P. Wingender, 2015, “China: How Can Revenue Reforms Contribute to Inclusive and Sustainable Growth?” IMF Working Paper 1566 (Washington: International Monetary Fund).
Parry, I., D. Heine, S. Li, and E. Lis, 2014, Getting Energy Prices Right: From Principle to Practice (Washington: International Monetary Fund).
Parry, I., B. Shang, P. Wingender, N. Vernon and T. Narasimhan, forthcoming, “Climate Mitigation in China: Which Policies Are Most Effective?” IMF Working Paper (Washington: International Monetary Fund).
World Bank and Development Research Center of the State Council, 2013, China 2030: Building a Modern, Harmonious, and Creative Society (Washington: World Bank).
Prepared by Philippe Wingender (FAD).
The carbon tax should be introduced progressively with rates announced in advance so firms and consumers have time to adapt and undertake mitigation investments (e.g., wind and solar plants, more efficient buildings).
The target is to lower the CO2 to GDP ratio by 60–65 percent below 2005 levels by 2030.
The ETS will cover electricity, domestic aviation, iron and steel, chemicals, cement, paper and other sectors.
The analysis may overstate the domestic health benefits of carbon mitigation policies as it assumes incremental benefits are the same, regardless of pollution concentrations. Recent evidence suggests a possible concave relation between mortality and pollution concentrations.
That is, adding a specific component with rates determined based on quantities of carbon to the ad valorem structure recently introduced. Alternatively, the tax could be set on coal processing plants which are far fewer in number than coal plants.
See Calder (2015).
Lam and Wingender (2015).
World Bank and Development Research Center of the State Council (2013).