Climate change and fiscal policy
Climate change and fiscal policy : a report for APEC / Stephen Howes and Leo Dobes. World Bank report ; 56563, Jan. 2011, 135 p.
Asia-Pacific Economic Cooperation (APEC) economies display large variation in terms of income per capita. The richest APEC economies have an income per capita about twenty times higher than the poorest ones. So far most work on fiscal policy and climate change has been written with developed economies in mind. This report corrects that bias with a particular focus on the developing economies of APEC. It draws on examples from three developing economies in particular, China, Indonesia and Vietnam. It also plays close attention to lessons that could be learnt from the advanced economies of APEC and elsewhere. On mitigation, the report notes that many developing as well as developed economies have now adopted emissions reduction targets. These targets are ambitious, and their achievement will not be easy. Instrument choice will be the difference between success and failure, and is a major theme of the report. The key message is that the characteristics of developing economies, particularly of their energy sectors, matter a lot when it comes to policy choice in this area. Simply mimicking what has been adopted in or recommended for developed countries is unlikely to work. Mitigation in developing countries requires a broad-based response with four key components… (© World Bank)