Carbon pricing across the world: how to efficiently spend growing revenues?

4 October 2018 - Climate Brief - By : Clément METIVIER / Sébastien POSTIC, Phd

This climate brief highlights that while there is an acceleration of carbon pricing policy implementation, associated revenues are on the rise (USD 32 billion in 2017). This increase raises the issue of the use of revenues.

I4CE distinguishes between 4 main uses of carbon revenues:

  • Investment in low-carbon projects;
  • Allocation to the general budget;
  • Reduction of other taxes;
  • Direct payment of premiums or subsidies.

Several dimensions must be considered when assessing the relevance of revenue use, and there is no silver bullet for an optimal revenue spending. I4CE shows that to maximize the acceptability and performance of carbon pricing schemes, transparency and discussions are key issues to address.

Carbon pricing across the world: how to efficiently spend growing revenues? Download
I4CE Contacts
Sébastien POSTIC, Phd
Sébastien POSTIC, Phd
Research Fellow – Public finance, Development Email
To learn more
  • 03/04/2025
    The adaptation reflex in public investment in practice: Pathway for 2025 and prospects

    The 3rd French national climate change adaptation plan (PNACC3) seeks to generalize an “adaptation reflex” in all public investments and all public support for investment. Operationalizing this ambition is essential for Stop investing in infrastructure, buildings and equipment that will not be ready to cope with the consequences of climate change; Seize the best opportunities available by taking advantage of investments already planned to strengthen the level of adaptation of the French economy at lower cost. 

  • 01/24/2025 Foreword of the week
    2025 – testing times for the EU’s ‘Investment’ Commission

    As Donald Trump kicks off another presidential mandate in the US, there is no turning away from the EU’s major challenges of competitiveness, energy security and decarbonising the economy. With a new European Commission in place since December 2024, the roll out of initiatives addressing those challenges can begin. Whilst a lot of focus goes […]

  • 01/17/2025 Foreword of the week
    France: Two urgent priorities for the 2025 Budget

    2025 begins with a new French government and a new budget debate, but with the same challenge as last year: how to reduce the deficit without putting the brakes on investment in the climate transition? Climate investments are the best investments we can make, according to the new Minister of Economy Éric Lombard. He’s right: any delay weakens our energy security and our position in the international race for cleantech, not to mention the pace of decarbonisation of our economy.

See all publications
Press contact Amélie FRITZ Head of Communication and press relations Email
Subscribe to our mailing list :
I register !
Subscribe to our newsletter
Once a week, receive all the information on climate economics
I register !
Fermer