Carbon Taxes, the Greenhouse Effect, and Developing Countries

Carbon Taxes


A universal case cannot be made for national carbon taxes. Nevertheless, such taxes make eminent sense for many developing countries – on the grounds of equity, efficiency, ease of tax administration, and an improved local environment, even ignoring the potential benefits from controlling global carbon emissions.

This paper- a product of the Office of the Vice President, Development Economics -is one in a series of background papers prepared for the World Development Report] 992. The Report, on development and the environment, discusses the possible effects of the expected dramatic growth in the world’s population, industrial output, use of energy, and demand for food. Copies of this and other World Development Report background papers are available free from the World Bank, 1818 H Street NW, Washington, DC 20433. Please contact the World Development Report office, room T7-101, extension 31393 (August 1992, 68 pages).

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