Fiscal Considerations in Curbing Climate Change

Fiscal Considerations in Curbing Climate Change

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Description

Climate change abounds with fiscal issues. At a macro level, the debate between a carbon tax, cap-and-trade system, and command-and-control regulation is about the extent to which the tax system is the best vehicle to address climate policy objectives. At a micro level, energy-related fiscal incentives and the tax treatment of carbon taxes, carbon permits, and climate markets can have important implications for a regime’s effectiveness. The question of how to address the distributional impacts of carbon mitigation, both domestically and internationally, is also a fiscal issue. This chapter provides a brief summary of the fiscal, administrative, and political considerations relevant in designing a climate migration regime. It then focuses on the importance of distributional offsets, and the challenges in implementing them.

Source Publication

Climate Finance: Regulatory and Funding Strategies for Climate Change and Global Development

Source Editors/Authors

Richard B. Stewart, Benedict Kingsbury, Bryce Rudyk

Publication Date

2009

Fiscal Considerations in Curbing Climate Change

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