After Paris : Fiscal, Macroeconomic and Financial Implications of Global Climate Change /

This paper discusses the implications of climate change for fiscal, financial, and macroeconomic policies. Most pressing is the use of carbon taxes (or equivalent trading systems) to implement the emissions mitigation pledges submitted by 186 countries for the December 2015 Paris Agreement while pro...

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Bibliographic Details
Main Author: Farid, Mai
Other Authors: Keen, Michael, Papaioannou, Michael, Parry, Ian
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2016.
Series:Staff Discussion Notes; Staff Discussion Notes ; No. 2016/001
Online Access:Full text available on IMF
Description
Summary:This paper discusses the implications of climate change for fiscal, financial, and macroeconomic policies. Most pressing is the use of carbon taxes (or equivalent trading systems) to implement the emissions mitigation pledges submitted by 186 countries for the December 2015 Paris Agreement while providing revenue for lowering other taxes or debt. Carbon pricing in developing countries would effectively mobilize climate finance, and carbon price floor arrangements are a promising way to coordinate policies internationally. Targeted fiscal measures that are tailored to national circumstances and robust across climate scenarios are needed to counter private sector under-investment in climate adaptation. And increased disclosure of carbon footprints, stress testing of asset values, and greater proliferation of hedging instruments, will facilitate low-emission investments and climate risk diversification through financial markets.
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Physical Description:1 online resource (46 pages)
Format:Mode of access: Internet
ISSN:2617-6750
Access:Electronic access restricted to authorized BRAC University faculty, staff and students