How to move ahead quickly on carbon pricing

The author, representing the IMF, contends that carbon pricing is a practical tool that serves national interests by reducing local air pollution and improving public health. An IMF working paper indicates that for the top 20 emitters, a carbon tax of $57.5 per ton of CO2 is justified by domestic co-benefits alone. The text suggests that finance ministries should lead the integration of carbon pricing into fiscal reforms, using the resulting revenues to lower other taxes. Because the value of these co-benefits varies by country—being higher in coal-dependent nations like China and Poland—the author advocates for a flexible international regime.

• Carbon pricing is currently underutilized globally, with only about 12% of global emissions covered by taxes on fossil fuel carbon content or permit trading schemes.
• Reducing CO2 emissions provides immediate domestic health benefits by reducing local outdoor air pollution from fossil fuel combustion, particularly coal, which is linked to over 3 million premature deaths annually worldwide.
• An IMF working paper found that for the top 20 emitters, national interests justify an average carbon tax or pricing of $57.5 per ton of CO2 based solely on domestic co-benefits, a figure 60% higher than US government inter-agency estimates of climate damages per ton.
• The efficiency of carbon prices from a national perspective varies by country; they are higher in China and Poland due to high population exposure to coal pollution and lower in Australia where such exposure is more limited.
• Carbon taxes and trading systems with allowance auctions generate government revenues that can be used for environmental tax reform to reduce the burden of other taxes.

APA

Parry, I. (2014). How to move ahead quickly on carbon pricing. World Economic Forum. https://www.weforum.org/stories/climate-action/carbon-pricing-climate-change-agreement/

Chicago

Parry, Ian. How to move ahead quickly on carbon pricing. World Economic Forum, 2014. https://www.weforum.org/stories/climate-action/carbon-pricing-climate-change-agreement/.

Wikipedia

{{cite press release |last1=Parry |first1=Ian |title=How to move ahead quickly on carbon pricing |publisher=World Economic Forum |date=19 September 2014 |url=https://www.weforum.org/stories/climate-action/carbon-pricing-climate-change-agreement/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@misc{parry2014how, author = {Parry, Ian}, title = {{How to move ahead quickly on carbon pricing}}, publisher = {World Economic Forum}, year = {2014}, month = sep, url = {https://www.weforum.org/stories/climate-action/carbon-pricing-climate-change-agreement/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }