Evaluating Policies to Implement the Paris Agreement: A Toolkit with Application to China

41 Pages Posted: 29 Nov 2016

See all articles by Ian Parry

Ian Parry

International Monetary Fund (IMF)

Baoping Shang

International Monetary Fund (IMF) - Fiscal Affairs Department

Nate Vernon

Independent

Philippe Wingender

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: October 20, 2016

Abstract

This paper describes a model, implemented in an Excel spreadsheet, for evaluating a wide range of fiscal and regulatory instruments policymakers might consider for implementing their Paris mitigation pledges. Policies are evaluated against a range of metrics, including impacts on carbon dioxide (CO2) emissions, revenue, deaths from local air pollution, economic welfare benefits and costs, and incidence across household and industry groups. The model is applied to China, the world’s largest emitter, but could be readily transferred to most other countries.

Keywords: Paris Agreement, carbon tax, China, air pollution, coal tax, emissions trading, incidence, welfare effects, spreadsheet model

JEL Classification: Q480, Q540, Q580, H230

Suggested Citation

Parry, Ian and Shang, Baoping and Vernon, Nate and Wingender, Philippe, Evaluating Policies to Implement the Paris Agreement: A Toolkit with Application to China (October 20, 2016). CESifo Working Paper Series No. 6132. Available at SSRN: https://ssrn.com/abstract=2876537

Ian Parry (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Baoping Shang

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

Nate Vernon

Independent ( email )

No Address Available

Philippe Wingender

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States
202-623-9831 (Phone)
202-623-4199 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
37
Abstract Views
226
PlumX Metrics