Working paper · 2024
A Global Incentive Scheme to Reduce Carbon Emissions
The paper proposes a Global Carbon Incentive under which every country emitting above the global per capita average pays into a shared fund, while countries below the average receive payouts. The design assigns differentiated obligations across countries and creates incentives to cut emissions while still supporting development.
Somik Lall, Raghuram Rajan, Christian Schoder. World Bank Policy Research Working Paper 10759, 2024.
The policy line
A single global carbon price, paid by above-average emitters and rebated to below-average ones, can align emission cuts with the development needs of poorer countries.
Summary
The paper proposes a Global Carbon Incentive under which every country emitting above the global per capita average pays into a shared fund, while countries below the average receive payouts. The design assigns differentiated obligations across countries and creates incentives to cut emissions while still supporting development.
The full text is available at the publisher.
