Currently, carbon tax schemes cover only about a fifth of global greenhouse-gas emissions
With the political will for a global tax lacking, many places are going it alone. The World Bank reckons that 45 countries and 34 subnational jurisdictions have adopted some form of carbon pricing, ranging from taxes to emissions-trading systems. But these schemes cover only about a fifth of global greenhouse-gas emissions. New research shows that such piecemeal progress can have unintended consequences.
A recent paper by Luc Laeven and Alexander Popov of the European Central Bank, published by the Centre for Economic Policy Research , analyses data on more than 2m loan tranches involving banks doing cross-border lending between 1988 and 2021, during which time many countries imposed carbon pricing.
The findings suggest that cracking down on carbon is a bit like squeezing a balloon. Press too hard all at once and it may pop, but squeeze only in one corner and the air will simply flow to where there is less pressure. Such effects also mirror concerns about leakages in industrial markets. The’s carbon-pricing scheme used to grant exemptions to heavy emitters, for fear that they would otherwise move production abroad.
Yet domestic carbon pricing is still a policy worth pursuing, says Tara Laan of the International Institute for Sustainable Development, a think-tank. Messrs Laeven and Popov conclude that, even after accounting for their efforts to shift dirty lending overseas, carbon taxes do somewhat reduce net fossil-fuel lending by the banks studied, because they lower domestic lending by more.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Africa’s ties to China and the West are starting to look more alikeChina has financed, developed or operates 35 big African ports and thousands of miles of roads and railway lines. However, many worry that China is losing interest in Africa
Read more »
Our Favorite Nintendo Switch Game Just Got Even Better Thanks to the Animal Crossing: New Horizons – Happy Home Paradise DLCPlaying Animal Crossing—don't text. 👀
Read more »
Burger King Is Selling Whoppers For Only 37 Cents This WeekendThis Saturday and Sunday only, BK is rolling back the price of its famous burger to the same price it was when it first debuted—37 cents.
Read more »
‘Green Bitcoin Mining’: The Big Profits In Clean CryptoBitcoin mining wastes enough power annually to power Belgium, unnecessarily adding 40 million tons of carbon dioxide to the atmosphere each year.
Read more »
Paul Smith Opens Shop in WilliamsburgThis is the designer's second full-price store in New York and fifth in the U.S.
Read more »
New data suggest 1 in 44 US children affected by autismNew government autism numbers suggest more U.S. children are being diagnosed with the developmental condition, and at younger ages.
Read more »