Carbon pricing and international transfers: financing the transition of the energy system in developing economies.

An urgent decarbonisation of the energy systems Is required to tackle the effects of global warming. Financing the transition to a low-carbon economy is a core aspect for most countries. Carbon pricing is a cost-effective policy instrument to internalize the costs of climate damage into prices. Carbon revenues can help on financing this transition, but the design of the policy mix can have important implications to households.