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Improving economic efficiency and climate mitigation outcomes through international co-ordination on carbon pricing

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  • Daniel Nachtigall

Abstract

This paper presents the potential benefits and challenges of enhanced international co-ordination on carbon pricing and outlines the different types and levels of co-ordination that are available for national and sub-national governments. These levels include, inter alia, facilitating new pricing schemes, phasing out inefficient fossil fuel subsidies, sectoral approaches, co-ordination on minimum carbon prices and carbon pricing clubs. Jurisdictions may want to adopt several of these options simultaneously and may co-ordinate at multiple levels of government or across countries and sectors. This creates a bottom-up ‘web of carbon pricing schemes’, which can be an important element in delivering the Nationally Determined Contributions of the Paris Agreement and which has the potential to support greater levels of climate action and ambition.

Suggested Citation

  • Daniel Nachtigall, 2019. "Improving economic efficiency and climate mitigation outcomes through international co-ordination on carbon pricing," OECD Environment Working Papers 147, OECD Publishing.
  • Handle: RePEc:oec:envaaa:147-en
    DOI: 10.1787/0ff894af-en
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    File URL: https://doi.org/10.1787/0ff894af-en
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    Cited by:

    1. Thube, Sneha & Peterson, Sonja & Nachtigall, Daniel & Ellis, Jane, 2021. "The economic and environment benefits from international co-ordination on carbon pricing: a review of economic modelling studies," Open Access Publications from Kiel Institute for the World Economy 248648, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    Carbon clubs; Carbon markets; Carbon pricing; International co-operation; Sectoral agreements;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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