2015 was a special year. During a few months the political stars aligned and made it possible for the international community to agree on the Agenda 2030 for Sustainable Development and the Paris Agreement to limit global warming. Now the signatories need to find ways to implement these agreements, which not only imply a deep decarbonization of the economy but must also meet the Sustainable Development Goals. In this article we discuss the importance of pricing greenhouse gas (GHG) emissions to make this happen. Climate abatement is a truly global public good and so we actually have to have a functioning policy in all countries. Our interest is thus on pricing in all countries but in particular the developing countries that are bigger and most crucial to the struggle for a green transition.
Sterner, T., Carson, R.T., Hafstead, M., Howard, P., Jagers, S.C., Köhlin, G., Parry, I., Rafaty, R., Somanatan, E., Jan Christoph Steckel, J.C., Whittington, D., Alpizar, F., Amber, S., Aravena, C., Bonilla, Jorge, Daniels, R.C., Garcia, J., Harrington, N., Kacker, K., Kerr, S., Medhin, M., Nam, P.K., Romero, G., Johansson-Stenman, O., Toman, M., Xu, J., Wang, M. (2020). 'Funding Inclusive Green Transition through Greenhouse Gas Pricing'. ifo DICE Report, I/2020 Spring, Volume 18, pp. 3-8.