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dc.titleCash Transfers for Pro-poor Carbon Taxes in Latin America and the Caribbean
dc.contributor.authorVogt-Schilb, Adrien
dc.contributor.authorWalsh, Brian
dc.contributor.authorFeng, Kuishuang
dc.contributor.authorDi Capua, Laura
dc.contributor.authorLiu, Yu
dc.contributor.authorZuluaga, Daniela
dc.contributor.authorRobles, Marcos
dc.contributor.authorHubacek, Klaus
dc.contributor.orgunitSocial Sector
dc.contributor.orgunitClimate Change Solutions Division
dc.coverageArgentina
dc.coverageBrazil
dc.coverageChile
dc.coverageColombia
dc.coverageCosta Rica
dc.coverageEcuador
dc.coveragePanama
dc.coverageParaguay
dc.coveragePeru
dc.coverageUruguay
dc.coverageEl Salvador
dc.coverageHonduras
dc.coverageGuatemala
dc.coverageNicaragua
dc.coverageMexico
dc.coverageLatin America and the Caribbean
dc.date.available2019-10-07T00:00:00
dc.date.issue2019-10-07T00:00:00
dc.description.abstractCarbon taxes are advocated as efficient fiscal and environmental policies, but they have proven difficult to implement. One reason is that carbon taxes can aggravate poverty by increasing prices of basic goods and services such as food, heating, and commuting. Meanwhile, cash transfer programs have been established as some of the most efficient poverty-reducing policies used in developing countries. Here, we quantify how governments can mitigate negative social consequences of carbon taxes by expanding the beneficiary base or the amounts disbursed with existing cash transfer programs. We focus on Latin America and the Caribbean, a region that has pioneered cash transfer programs, which aspires to contribute to climate mitigation, and faces inequality. We find that 30% of carbon revenues could suffice to compensate poor and vulnerable households on average, leaving 70% to fund other political priorities. We also quantify tradeoffs for governments choosing who and how much to compensate.
dc.format.extent17
dc.identifier.doihttp://dx.doi.org/10.18235/0001930
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Cash_Transfers_for_Pro-poor_Carbon_Taxes_in_Latin_America_and_the_Caribbean_en.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Uso_de_transferencias_monetarias_para_eliminar_el_impacto_sobre_la_pobreza_de_un_impuesto_al_carbono_Simulaciones_para_América_Latina_y_el_Caribe_es.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectClimate Change
dc.subjectClimate Change Mitigation
dc.subjectPoverty Reduction
dc.subjectConditional Cash Transfer
dc.subjectCarbon Tax
dc.subjectIncome Distribution
dc.subject.jelcodeQ01 - Sustainable Development
dc.subject.jelcodeO13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeN56 - Latin America • Caribbean
dc.subject.jelcodeH22 - Incidence
dc.subject.keywordscash transfers; carbon taxes; climate change
dc.typeWorking Papers
idb.identifier.pubnumberIDB-WP-01046
idb.operationRG-E1563
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