콘텐츠 바로가기
로그인
컨텐츠
  • HOME
  • SEARCH
PLUS Text Size MINUS RESET
FACEBOOK TWITTER Linked In

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Social Development Employment

Print

Pricing carbon consumption : A review of an emerging trend

Related Document
Frame of Image
  • Pricing carbon consumption
  • Munnings, Clayton; Acworth, William; Sartor, Oliver; Kim, Yong-Gun; Neuhoff, Karsten
  • Resources of the Future


link
Title Pricing carbon consumption
Similar Titles
Sub Title

A review of an emerging trend

Material Type Reports
Author(English)

Munnings, Clayton; Acworth, William; Sartor, Oliver; Kim, Yong-Gun; Neuhoff, Karsten

Publisher

Washington, DC : Resources of the Future

Date 2016-11
Series Title; No RFF DP / 16-49
Pages 36
Subject Country United States(Americas)
Australia(Asia and Pacific)
China(Asia and Pacific)
Japan(Asia and Pacific)
South Korea(Asia and Pacific)
Language English
File Type Link
Subject Social Development < Employment
Holding Resources of the Future
License

Abstract

Nearly every carbon price regulates the production of carbon emissions, typically at midstream points of compliance, such as a power plant. Over the last six years, however, policymakers in Australia, California, China, Japan, and Korea implemented carbon prices that regulate the consumption of carbon emissions, where points of compliance are further downstream, such as distributors or final consumers. This article aims to describe the design of these prices on carbon consumption, understand and explain the motivations of policymakers who have implemented them, and identify insights for policymakers considering whether to price carbon consumption. We find a clear trend of policymakers layering prices on carbon consumption on top of prices on carbon production in an effort to improve economic efficiency by facilitating additional downstream abatement. In these cases, prices on carbon consumption are used to overcome a shortcoming in the price on carbon production: incomplete pass-through of the carbon price from producers to consumers. We also find that some policymakers implement prices on carbon in an effort to reduce emissions leakage or because large producers of carbon are not within jurisdiction. Because policymakers are starting to view prices on carbon consumption as a strategy to improve economic efficiency and reduce emissions leakage in a way that is compatible with local and international law, we expect jurisdictions will increasingly implement and rely upon them.