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Using Carbon Revenues

Author

Listed:
  • Oskar LECUYER
  • Sébastien POSTIC (I4CE)

Abstract

In 2019, 42% of the aggregate carbon revenue was channeled to the general state budget, 47% was allocated to environmental or broader projects, 5% went to tax cuts and 6% to direct transfers to families or businesses.Countries that have successfully implemented carbon pricing have managed to align the use of carbon revenues with national priorities, associating reform with a discourse that is in line with their development agenda.Regardless of the objective sought, governance issues are crucial and range from transparency in revenue use, and clarity of trans fers and compensation, to the legitimacy of the reform process.

Suggested Citation

  • Oskar LECUYER & Sébastien POSTIC (I4CE), 2020. "Using Carbon Revenues," Working Paper 0695f2c3-c8e5-4821-86b1-6, Agence française de développement.
    • Handle: RePEc:avg:wpaper:en10740
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    File URL: https://www.afd.fr/sites/afd/files/2020-06-03-39-18/Policy_Brief%201%20VA%20BAT%20web.pdf
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    More about this item

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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