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Using Carbon Pricing Revenues to Finance Infrastructure Access

Author

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  • Jakob, Michael
  • Chen, Claudine
  • Fuss, Sabine
  • Marxen, Annika
  • Rao, Narasimha
  • Edenhofer, Ottmar

Abstract

Introducing a price on greenhouse gas emissions would not only contribute to reducing the risk of dangerous anthropogenic climate change, but would also generate substantial public revenues. Some of these revenues could be used to cover investment needs for infrastructure providing access to water, sanitation, electricity, telecommunications and transport. In this way, emission pricing could promote sustainable socio-economic development by safeguarding the stability of natural systems which constitute the material basis of economies while at the same time providing public goods that are essential for human well- being. An analysis of several climate scenarios with different stabilization targets and technological assumptions reveals that emission pricing has a substantial potential to close existing access gaps.

Suggested Citation

  • Jakob, Michael & Chen, Claudine & Fuss, Sabine & Marxen, Annika & Rao, Narasimha & Edenhofer, Ottmar, "undated". "Using Carbon Pricing Revenues to Finance Infrastructure Access," Climate Change and Sustainable Development 230602, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:230602
    DOI: 10.22004/ag.econ.230602
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    File URL: https://ageconsearch.umn.edu/record/230602/files/NDL2015-094.pdf
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    Cited by:

    1. Kalkuhl, Matthias & Fernandez Milan, Blanca & Schwerhoff, Gregor & Jakob, Michael & Hahnen, Maren & Creutzig, Felix, 2017. "Fiscal Instruments for Sustainable Development: The Case of Land Taxes," MPRA Paper 78652, University Library of Munich, Germany.
    2. Kalkuhl, Matthias & Fernandez Milan, Blanca & Schwerhoff, Gregor & Jakob, Michael & Hahnen, Maren & Creutzig, Felix, 2018. "Can land taxes foster sustainable development? An assessment of fiscal, distributional and implementation issues," Land Use Policy, Elsevier, vol. 78(C), pages 338-352.
    3. Ordonez, Jose Antonio & Jakob, Michael & Steckel, Jan Christoph & Ward, Hauke, 2023. "India's just energy transition: Political economy challenges across states and regions," Energy Policy, Elsevier, vol. 179(C).
    4. Mete Dibo & Özgür Emre Koç & Florina Oana Virlanuta & Neslihan Koç & Radu Octavian Kovacs & Suna Şahin & Valentina-Alina Vasile (Dobrea) & Marian-Gigi Mihu, 2025. "Financing Targeted Basic Income Through Carbon Taxation: A Simulation for Türkiye," Sustainability, MDPI, vol. 17(17), pages 1-27, August.
    5. Campagnolo, Lorenza & De Cian, Enrica, 2021. "Distributional Consequences of Climate Change Impacts on Energy Demand across Italian Households," RFF Working Paper Series 21-04, Resources for the Future.
    6. Mayer, Jakob & Dugan, Anna & Bachner, Gabriel & Steininger, Karl W., 2021. "Is carbon pricing regressive? Insights from a recursive-dynamic CGE analysis with heterogeneous households for Austria," Energy Economics, Elsevier, vol. 104(C).
    7. Fuss, Sabine & Chen, Claudine & Jakob, Michael & Marxen, Annika & Rao, Narasimha D. & Edenhofer, Ottmar, 2016. "Could resource rents finance universal access to infrastructure? A first exploration of needs and rents," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 691-712, December.

    More about this item

    Keywords

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    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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