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Evaluating Policies to Implement the Paris Agreement: A Toolkit with Application to China

Author

Listed:
  • Ian Parry
  • Baoping Shang
  • Nate Vernon
  • Philippe Wingender

Abstract

This paper describes a model, implemented in an Excel spreadsheet, for evaluating a wide range of fiscal and regulatory instruments policymakers might consider for implementing their Paris mitigation pledges. Policies are evaluated against a range of metrics, including impacts on carbon dioxide (CO2) emissions, revenue, deaths from local air pollution, economic welfare benefits and costs, and incidence across household and industry groups. The model is applied to China, the world’s largest emitter, but could be readily transferred to most other countries.

Suggested Citation

  • Ian Parry & Baoping Shang & Nate Vernon & Philippe Wingender, 2016. "Evaluating Policies to Implement the Paris Agreement: A Toolkit with Application to China," CESifo Working Paper Series 6132, CESifo.
    • Handle: RePEc:ces:ceswps:_6132
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    References listed on IDEAS

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    More about this item

    Keywords

    Paris Agreement; carbon tax; China; air pollution; coal tax; emissions trading; incidence; welfare effects; spreadsheet model;
    All these keywords.

    JEL classification:

    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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