A carbon tax is one of the main pricing instruments for climate change mitigation. Many industrialized countries have implemented it. Developing countries are also showing strong interest in it. However, the key questions they currently face are: (i) what type of tax design architecture best suits them, particularly how best to utilize the carbon tax revenues; (b) how does it impact the poor? Can a carbon tax be pro-poor? (c) Does a carbon tax produce fiscal co-benefits? (d) Does a carbon tax help reduce economic informality? To answer these questions, the webinar presents results from three studies on carbon tax for developing economies conducted by the speaker over the last five years. Two studies are for low-income countries in Sub-Saharan Africa (Cote d’Ivoire and Ethiopia) and one study is for a middle-income country (China). The findings will be complemented with the speaker’s forthcoming review study in the Journal of Economic Literature on carbon taxes.

Speakers: Govinda R Timilsina

Govinda R Timilsina is a Senior Research Economist at the Development Research Group of the World Bank, Washington, DC. He has almost 25 years of experience across a broad range of energy and climate change economics and policies at the international level. His key expertise includes carbon pricing, climate change mitigation, renewable energy, electricity economics, general equilibrium and energy sector modeling, urban transportation and infrastructure economics. Prior to joining the Bank, Dr. Timilsina was a Senior Research Director at the Canadian Energy Research Institute, Calgary, Canada. At present, he is leading a number of studies, including carbon pricing for developing countries, infrastructure and economic growth, and electricity economics.