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Using Carbon Pricing Revenues to Finance Infrastructure Access

Author

Listed:
  • Michael Jakob

    (Mercator Research Institute on Global Commons and Climate Chang and Potsdam Institute for Climate Change Impact Research)

  • Claudine Chen

    (Mercator Research Institute on Global Commons and Climate Change)

  • Sabine Fuss

    (Mercator Research Institute on Global Commons and Climate Change)

  • Annika Marxen

    (Technical University Berlin and Mercator Research Institute on Global Commons and Climate Change)

  • Narasimha Rao

    (International Institute of Systems Analysis)

  • Ottmar Edenhofer

    (Mercator Research Institute on Global Commons and Climate Change, Potsdam Institute for Climate Change Impact Research and Technical University Berlin)

Abstract

Introducing a price on greenhouse gas emissions would not only contribute to reducing the risk of dangerous anthropogenic climate change, but would also generate substantial public revenues. Some of these revenues could be used to cover investment needs for infrastructure providing access to water, sanitation, electricity, telecommunications and transport. In this way, emission pricing could promote sustainable socio-economic development by safeguarding the stability of natural systems which constitute the material basis of economies while at the same time providing public goods that are essential for human well- being. An analysis of several climate scenarios with different stabilization targets and technological assumptions reveals that emission pricing has a substantial potential to close existing access gaps.

Suggested Citation

  • Michael Jakob & Claudine Chen & Sabine Fuss & Annika Marxen & Narasimha Rao & Ottmar Edenhofer, 2015. "Using Carbon Pricing Revenues to Finance Infrastructure Access," Working Papers 2015.94, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:2015.94
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    References listed on IDEAS

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    2. Fuss, Sabine & Chen, Claudine & Jakob, Michael & Marxen, Annika & Rao, Narasimha D. & Edenhofer, Ottmar, 2016. "Could resource rents finance universal access to infrastructure? A first exploration of needs and rents," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 691-712, December.
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    Cited by:

    1. Ordonez, Jose Antonio & Jakob, Michael & Steckel, Jan Christoph & Ward, Hauke, 2023. "India's just energy transition: Political economy challenges across states and regions," Energy Policy, Elsevier, vol. 179(C).
    2. Kalkuhl, Matthias & Fernandez Milan, Blanca & Schwerhoff, Gregor & Jakob, Michael & Hahnen, Maren & Creutzig, Felix, 2017. "Fiscal Instruments for Sustainable Development: The Case of Land Taxes," MPRA Paper 78652, University Library of Munich, Germany.
    3. Fuss, Sabine & Chen, Claudine & Jakob, Michael & Marxen, Annika & Rao, Narasimha D. & Edenhofer, Ottmar, 2016. "Could resource rents finance universal access to infrastructure? A first exploration of needs and rents," Environment and Development Economics, Cambridge University Press, vol. 21(6), pages 691-712, December.
    4. Mayer, Jakob & Dugan, Anna & Bachner, Gabriel & Steininger, Karl W., 2021. "Is carbon pricing regressive? Insights from a recursive-dynamic CGE analysis with heterogeneous households for Austria," Energy Economics, Elsevier, vol. 104(C).
    5. Kalkuhl, Matthias & Fernandez Milan, Blanca & Schwerhoff, Gregor & Jakob, Michael & Hahnen, Maren & Creutzig, Felix, 2018. "Can land taxes foster sustainable development? An assessment of fiscal, distributional and implementation issues," Land Use Policy, Elsevier, vol. 78(C), pages 338-352.
    6. De Cian, Enrica & Campagnolo, Lorenza, 2021. "Distributional Consequences of Climate Change Impacts on Energy Demand across Italian Households," RFF Working Paper Series 21-04, Resources for the Future.

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    More about this item

    Keywords

    Q31; H54;

    JEL classification:

    • Q31 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Demand and Supply; Prices
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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