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dc.titleEffective Carbon Tax Design: Key Considerations from Latin America
dc.contributor.authorCaffera, Marcelo
dc.contributor.authorTalbot-Wright, Hipólito
dc.contributor.authorArioua, Eugenia
dc.contributor.authorDelgado, Raúl
dc.contributor.orgunitFiscal Management Division
dc.contributor.orgunitInstitutions for Development Sector
dc.contributor.orgunitClimate Change Solutions Division
dc.coverageChile
dc.coverageColombia
dc.coverageMexico
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2025-10-02T00:10:00
dc.date.issue2025-10-02T00:10:00
dc.description.abstractThis study documents the experiences of Chile, Colombia, and Mexico in the design and implementation of carbon taxes, with the aim of drawing lessons and recommendations to improve the development of these instruments and support countries seeking to adopt them. The publication is led by the member countries of the Regional Climate Change Platform of Ministries of Economy and Finance (MEF Climate Change Platform). Drawing on economic theory, evidence, and the experiences of these three countries, the document identifies and elaborates on five key considerations to take into account when designing and implementing a carbon tax: (i) defining the objectives of the tax and analyzing policy options; (ii) specifying the design of the tax, including coverage, rate, and institutional arrangements; (iii) managing public acceptance; (iv) strengthening carbon pricing interventions; and (v) integrating carbon taxes and carbon credits. Broadly speaking, the study highlights that, while carbon taxes are popular public policy tools for climate change mitigation and revenue generation, their effectiveness is often constrained by political feasibility and socioeconomic challenges, underscoring the need for complementary policies.
dc.format.extent79
dc.identifier.doihttp://dx.doi.org/10.18235/0013737
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Effective-Carbon-Tax-Design-Key-Considerations-from-Latin-America.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Diseno-eficaz-de-impuestos-al-carbono-consideraciones-clave-desde-America-Latina.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.relation.seriesMEF Climate Change Platform
dc.subjectTaxation
dc.subjectFossil Fuel
dc.subjectGreenhouse Gas Emission
dc.subjectCarbon Tax
dc.subjectClimate Change
dc.subjectCarbon Offsetting
dc.subjectTax System
dc.subjectRating
dc.subjectPollution Prevention
dc.subjectMinistries
dc.subjectDecarbonization
dc.subjectCoal
dc.subjectFinance
dc.subjectFiscal Policy
dc.subjectScience and Technology
dc.subject.jelcodeH23 - Externalities • Redistributive Effects • Environmental Taxes and Subsidies
dc.subject.jelcodeQ54 - Climate • Natural Disasters and Their Management • Global Warming
dc.subject.jelcodeQ58 - Government Policy
dc.subject.keywordscarbon tax;Fiscal policy;fiscal management;Carbon Pricing;tax policy;climate policy;emission reduction
dc.typeLearning Materials
idb.identifier.pubnumberIDB-LM-00769
idb.operationRG-T4163
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