||The political economy of British Columbia's Carbon Tax
by Prof. Kathryn Harrison
In July 2008, the Canadian province of British Columbia (BC) launched North America’s first revenue-neutral carbon tax reform. The tax, which applied to all combustion sources of all fossil fuels, was introduced at a rate of CAD 10 per tonne of CO2, with a schedule for annual increases of CAD 5 per tonne of CO2 until the tax reached CAD 30 per tonne of CO2 in 2012. This paper reviews the political economy of the BC tax in three distinct periods – its origins, its survival in the face of political backlash, and its longer-term prospects.
||The Political Economy of Fuel Subsidies in Colombia
by Helena Garcia Romero, Laura Calderon Etter
Colombia has made progress towards eliminating fuel and diesel subsidies and reducing discretionary spaces allowing for artificially low fuel prices, but challenges remain. Colombia has provided explicit and implicit subsidies to gasoline and diesel since 1983, costing the government up to 1.6% of GDP. This paper discusses the political economy of fuel subsidies in the country to understand why reform has been so slow. It focuses on the groups benefitting from the subsidies and their political participation, as well as other economic impacts that have limited the political will to eliminate them.
||Ireland's Carbon Tax and the Fiscal Crisis
by Frank J. Convery, Louise Dunne, Deirdre Joyce
Beginning in late 2008, Ireland experienced a fiscal crisis. This paper describes the features of the 2010 carbon tax, recounts the story of its interplay between fiscal adjustment and helping meet the obligations to raise taxes, and implications for competitiveness and carbon leakage, environmental effectiveness and equity issues,
||Towards Consistent and Effective Carbon Pricing in Germany?
by Ivana Capozza, Joseph Curtin
Germany committed itself to challenging greenhouse gas (GHG) emission reduction targets to 2020 and beyond. It has implemented a composite mix of policy measures to achieve its climate change mitigation goals, including a range of market-based instruments. This paper examines the carbon prices that have emerged from the implementation of three key market-based instruments in Germany: energy taxes, vehicle taxes and the EU Emissions Trading System.