Knowledge Tree
carbon pricing revenue
Also known as: carbon pricing revenues, carbon pricing revenue usage
Facts (24)
Sources
Designing Carbon Pricing Policies Across the Globe link.springer.com 17 facts
claimEconomists tend to recommend lump-sum transfers and reductions in distortionary taxation for carbon pricing revenue, whereas experts from other disciplines prefer government spending options that are more effective at raising public support for climate policies.
claimExperts who prioritize stringent global climate policy and the well-being of future generations consistently recommend using carbon pricing revenue to support affected households domestically and abroad, and to support climate policy in other countries.
measurementWhen allowed to recommend multiple options for carbon pricing revenue use, 59% of experts support 'green R&D' and 56% support 'transfers to particularly affected households'.
measurementFemale experts recommend using carbon pricing revenue for 'green R&D' significantly more often than male experts (p = 0.006), which adjusts the share of experts recommending this option from 61% in the sample to 67% in the hypothetical population, according to the study 'Designing Carbon Pricing Policies Across the Globe'.
referenceThe "Economists' Statement on Carbon Dividends" published in the Wall Street Journal in 2019 explicitly recommended using carbon pricing revenues exclusively for lump-sum transfers to households.
measurementRecommendations for using carbon pricing revenue for 'equal lump-sum transfers to households' are less frequent at global average GDP per capita levels, according to the study 'Designing Carbon Pricing Policies Across the Globe'.
claimEconomists tend to recommend lump-sum transfers and reductions in distortionary taxation for carbon pricing revenue usage, while non-economists tend to recommend governmental spending such as subsidies for renewables.
claimThe Economists’ Statement on Carbon Dividends, published in the Wall Street Journal in 2019, recommends using carbon pricing revenues for lump-sum transfers.
measurementExpert support for renewable energy subsidies as a carbon pricing revenue usage is 66% in Asia compared to 25% in North America.
measurement30% of North American experts rank 'equal lump-sum transfers to households' as the most preferred use of carbon pricing revenue, compared to only 2% of Asian experts.
measurementNorth American experts most frequently recommend 'equal lump-sum transfers to households' (30%) as the primary use for carbon pricing revenue, whereas only 2% of Asian experts select this as their most preferred option.
claimRecommendations for using carbon pricing revenue for the 'reduction of distortionary taxes' are less frequent at global average GDP per capita levels and among economic experts, according to the study 'Designing Carbon Pricing Policies Across the Globe'.
measurementExpert support for equal lump-sum transfers as a carbon pricing revenue usage is 42% in North America compared to 9% in Asia.
claimRecommendations for using carbon pricing revenue for 'subsidies for renewable energy' are more frequent at global average GDP per capita levels and are more likely to be supported by non-economists, according to the study 'Designing Carbon Pricing Policies Across the Globe'.
claimWhen restricted to selecting only one 'most recommended option' for carbon pricing revenue use, experts rank 'transfers to particularly affected households' first, followed by 'equal lump-sum transfers to households' and 'reduction of distortionary taxes'.
claimCarattini et al. (2019) found that returning carbon pricing revenues to citizens is crucial for public support for a carbon pricing scheme.
claimNon-economic experts recommend using carbon pricing revenue for international transfers to countries particularly affected by climate change more frequently than economists.
Carbon Pricing for Inclusive Prosperity: The Role of Public Support econfip.org 4 facts
claimThe authors of the policy brief 'Carbon Pricing for Inclusive Prosperity: The Role of Public Support' argue that the method by which governments spend carbon pricing revenues is a critical factor in determining the success of a carbon pricing proposal.
claimThe 'Yellow Vest' protests in France were perceived as a reaction to unfairness, as the French government had recently reduced wealth taxes and directed less than one-fourth of carbon pricing revenue toward direct compensatory measures for poor households.
claimReturning carbon pricing revenue as equal-per-capita dividends is preferred by governments predominantly focusing on equity, according to Klenert and Mattauch (2016).
claimA 'double dividend'—a reduction in the overall cost of carbon pricing—can occur if carbon pricing revenues are used to lower other taxes, according to Goulder (2013).
How governments address climate change through carbon pricing ... nature.com Apr 15, 2025 1 fact
claimTargeted redistribution of carbon pricing revenues contributes to broader public acceptance of climate protection measures, which is essential for a fair and sustainable transition to a low-carbon economy.
How governments address climate change through carbon pricing ... discovery.researcher.life Apr 15, 2025 1 fact
claimCarbon pricing revenues can be recycled for public investment, and public spending needs to be restructured as part of climate policy.
Publications - I4CE i4ce.org 1 fact
procedureI4CE categorizes the use of carbon pricing revenues into four main areas: investment in low-carbon projects, allocation to the general budget, and reduction of other taxes or costs.