EFFECTS OF CARBON PRICING AND OTHER CLIMATE POLICIES ON CO <sub>2</sub> EMISSIONS
Abstract In this study, we provide ex post empirical analysis of the effects of climate policies on carbon emissions at the aggregate national level, using a comprehensive database of 121 countries. Carbon taxes and emissions trading systems (ETS), and the overall stringency of climate policies are considered. We use dynamic panel regressions, controlling for macroeconomic factors (economic development, GDP growth, urbanisation and the energy mix). Higher carbon taxes and ETS prices reduce carbon emissions. An increase in carbon taxes by $10 per ton of CO 2 reduces CO 2 emissions per capita by 1.3% in the short run and by 4.6% in the long run.
Authors
- Előd Takáts (ORCID: https://orcid.org/0000-0002-4740-7321)
- Emanuel Kohlscheen (ORCID: https://orcid.org/0000-0001-5386-3449)
- Richhild Moessner (ORCID: https://orcid.org/0000-0002-0836-9246)
Institutions
- Heidelberg University (DE)
- Bank for International Settlements (CH)
- National Institute of Economic and Social Research (GB)
- Heidelberg University (US)
- London School of Economics and Political Science (GB)
- Fafo Foundation (NO)
Publication Details
- Journal
- National Institute Economic Review
- Published
- 2025-11-07
- DOI
- https://doi.org/10.1017/nie.2025.10066
- Primary Topic
- Energy, Environment, Economic Growth
- Type
- article
- Field-Weighted Citation Impact
- 0.00
Funders
- Eidgenössische Technische Hochschule Zürich