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Distributional Effects of Carbon Tax in Ethiopia : A Computable General Equilibrium Analysis / Govinda R. Timilsina, Samuel Sebsibie.
Author
Timilsina, Govinda R.
[Browse]
Format
Book
Language
English
Published/​Created
Washington, D.C. : The World Bank, 2023.
Description
1 online resource.
Availability
Available Online
World Bank E-Library Publications
Details
Subject(s)
Climate change
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Author
Sebsibie, Samuel
[Browse]
Series
Policy research working papers.
[More in this series]
Summary note
Developing countries are increasingly giving attention to carbon pricing to reduce their emissions, particularly in meeting their nationally determined contribution under the Paris Climate Agreement. However, they would like to understand the potential economic, distributional, and environmental impacts of carbon pricing policies before they consider implementation. Using a computable general equilibrium model of Ethiopia, this study examines the effects of a hypothetical carbon tax (US$20/total carbon dioxide) under several alternative schemes to recycle carbon tax revenue to the economy. The study finds that a carbon tax would be regressive in all schemes considered except those when the tax revenue is recycled, as a cash transfer, to household income groups either equally or inversely proportional to their incomes. The schemes that make the carbon tax progressive also cause a higher reduction of carbon dioxide emissions, thereby ensuring the alignment of equity and environmental outcomes of the carbon tax. However, these schemes are not necessarily economically efficient because they cause higher reductions of gross domestic product compared to other options considered.
Source of description
Description based on publisher supplied metadata and other sources.
Other title(s)
Distributional Effects of Carbon Tax in Ethiopia
Other standard number
10.1596/1813-9450-10476
Statement on language in description
Princeton University Library aims to describe library materials in a manner that is respectful to the individuals and communities who create, use, and are represented in the collections we manage.
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