April 17, 2011

The Possibilities For Global Poverty Reduction Using Revenues From Global Carbon Pricing

by James B. Davies, Xiaojun Shi and John Whalley

- Global carbon pricing can yield revenues which are large enough to create significant global pro-poor redistributive opportunities. We analyze alternative multidecade growth trajectories for major global economies with carbon tax rates designed to stabilize emissions in the presence of both continued country growth and autonomous energy use efficiency improvement. In our central case analysis, revenues from globally internalizing carbon pricing rise to 7% and then fall to 5% of gross world product.

Davies, J.B., X. Shi and J. Whalley (2011). "The Possibilities For Global Poverty Reduction Using Revenues From Global Carbon Pricing."NBER Working Paper No. 16878, Mar 2011.