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Estimates of the inflation effect of a global carbon price on consumer, investment, export, and import prices

Andersson, Fredrik N G LU (2018) In Working Papers
Abstract
This paper considers the potential inflation effects of a global carbon price on consumer prices, investment prices, export prices, and import prices. We estimate the effects under three different scenarios. The results clearly indicate that the inflation effects in developed countries of a 100 USD/ton carbon price are small. For developing countries, the inflation effect is larger and potentially too large for it to be politically feasible to introduce a global carbon price. However, a simple adjustment of the price based on the price level in each country equalizes the inflation effects across all countries, whereby a global carbon price is more likely to be implemented.
Abstract (Swedish)
This paper considers the potential inflation effects of a global carbon price on consumer prices, investment prices, export prices. and import prices. We estimate the effects under three different scenarios. The results clearly indicate that the inflation effects in developed countries of a 100 USD/ton carbon price are small. For developing countries, the inflation effect is larger and potentially too large for it to be politically feasible to introduce a global carbon price. However, a simple adjustment of the price based on the price level in each country equalizes the inflation effects across all countries, whereby a global carbon price is more likely to be implemented.
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working paper/Preprint
publication status
published
subject
keywords
carbon price, inflation, monetary policy, consumer prices, investment prices, export prices, import prices, carbon price, inflation, consumer prices, export prices, imports prices, investment prices, monetary policy, E31, E52, Q54, Q58
in
Working Papers
issue
2018:22
language
English
LU publication?
yes
id
04223d97-403b-4010-aab9-0dfad8c23b01
date added to LUP
2018-09-04 14:48:15
date last changed
2024-09-10 00:42:56
@misc{04223d97-403b-4010-aab9-0dfad8c23b01,
  abstract     = {{This paper considers the potential inflation effects of a global carbon price on consumer prices, investment prices, export prices, and import prices. We estimate the effects under three different scenarios. The results clearly indicate that the inflation effects in developed countries of a 100 USD/ton carbon price are small. For developing countries, the inflation effect is larger and potentially too large for it to be politically feasible to introduce a global carbon price. However, a simple adjustment of the price based on the price level in each country equalizes the inflation effects across all countries, whereby a global carbon price is more likely to be implemented.}},
  author       = {{Andersson, Fredrik N G}},
  keywords     = {{carbon price; inflation; monetary policy; consumer prices; investment prices; export prices; import prices; carbon price; inflation; consumer prices; export prices; imports prices; investment prices; monetary policy; E31; E52; Q54; Q58}},
  language     = {{eng}},
  month        = {{09}},
  note         = {{Working Paper}},
  number       = {{2018:22}},
  series       = {{Working Papers}},
  title        = {{Estimates of the inflation effect of a global carbon price on consumer, investment, export, and import prices}},
  url          = {{https://lup.lub.lu.se/search/files/194855397/WP18_22.pdf}},
  year         = {{2018}},
}