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Coordinated carbon taxes or tightened NDCs : Distributional implications of two options for climate negotiations

Mukanjari, Samson LU orcid and Sterner, Thomas (2023) In Q Open 3(1).
Abstract
Concerns about fairness among countries remain significant obstacles to a stronger global climate treaty. This paper addresses the distributional implications of two mechanisms to strengthen the Paris Agreement, the incorporation of national carbon pricing, and the tightening of nationally determined contributions (NDCs). Both are found to be viable mechanisms. They are also less extreme, and therefore more acceptable, than both grandfathering, which favors the most fossil-intensive economies, and equal per capita allocation, which favors low-income countries that use less fossil fuel. However, compensatory funding for developing countries will also be needed at scale. An analysis of the ambitiousness of current climate policies shows a... (More)
Concerns about fairness among countries remain significant obstacles to a stronger global climate treaty. This paper addresses the distributional implications of two mechanisms to strengthen the Paris Agreement, the incorporation of national carbon pricing, and the tightening of nationally determined contributions (NDCs). Both are found to be viable mechanisms. They are also less extreme, and therefore more acceptable, than both grandfathering, which favors the most fossil-intensive economies, and equal per capita allocation, which favors low-income countries that use less fossil fuel. However, compensatory funding for developing countries will also be needed at scale. An analysis of the ambitiousness of current climate policies shows a broad range of outcomes: the more ambitious NDCs have emission levels below either the per capita or grandfathering levels, and sometimes both. However, some NDCs, especially those tabled by the largest emitters, are severely lacking in ambition. (Less)
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author
and
organization
publishing date
type
Contribution to journal
publication status
published
subject
in
Q Open
volume
3
issue
1
publisher
Oxford University Press
external identifiers
  • scopus:85162132352
ISSN
2633-9048
DOI
10.1093/qopen/qoad012
language
English
LU publication?
yes
id
eef816a2-9bd8-4d31-ba95-91968c98ee4e
date added to LUP
2023-04-12 17:11:48
date last changed
2023-10-26 15:03:25
@article{eef816a2-9bd8-4d31-ba95-91968c98ee4e,
  abstract     = {{Concerns about fairness among countries remain significant obstacles to a stronger global climate treaty. This paper addresses the distributional implications of two mechanisms to strengthen the Paris Agreement, the incorporation of national carbon pricing, and the tightening of nationally determined contributions (NDCs). Both are found to be viable mechanisms. They are also less extreme, and therefore more acceptable, than both grandfathering, which favors the most fossil-intensive economies, and equal per capita allocation, which favors low-income countries that use less fossil fuel. However, compensatory funding for developing countries will also be needed at scale. An analysis of the ambitiousness of current climate policies shows a broad range of outcomes: the more ambitious NDCs have emission levels below either the per capita or grandfathering levels, and sometimes both. However, some NDCs, especially those tabled by the largest emitters, are severely lacking in ambition.}},
  author       = {{Mukanjari, Samson and Sterner, Thomas}},
  issn         = {{2633-9048}},
  language     = {{eng}},
  month        = {{04}},
  number       = {{1}},
  publisher    = {{Oxford University Press}},
  series       = {{Q Open}},
  title        = {{Coordinated carbon taxes or tightened NDCs : Distributional implications of two options for climate negotiations}},
  url          = {{http://dx.doi.org/10.1093/qopen/qoad012}},
  doi          = {{10.1093/qopen/qoad012}},
  volume       = {{3}},
  year         = {{2023}},
}