Efforts to control atmospheric accumulations of greenhouse gases
that threaten to heat up the planet are in their infancy. Although
the IMF is not an environmental organisation, environmental issues
matter for the organisation's mission when they have major
implications for macroeconomic performance and fiscal policy.
Climate change clearly passes both these tests. This volume
provides practical guidelines for the design of fiscal policies
(carbon taxes and emissions trading systems with allowance
auctions) to reduce greenhouse gases. Not only are these
instruments potentially the most effective at exploiting emission
reduction opportunities in the near and longer term, but they can
also generate for many countries a valuable new source of
government revenue. The chapters, written by leading experts,
explain the case for fiscal policies over other approaches; how
these policies can be implemented; reasonable levels for emissions
prices; policies for the forest sector; appropriate policy for
developing countries; the most promising fiscal instruments for
climate finance; and lessons to be drawn from prior policy
experience. This is essential reading for policymakers in finance
and environment ministries in developed and developing countries
alike, and others grappling with balancing environmental and
development concerns.
General
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