Title Fiscal Policies for Development and Climate Action
Subtitle (International Development in Focus)
Author Miria A. Pigato
ISBN 9781464813580
List price USD 45.00
Price outside India Available on Request
Original price
Binding Paperback
No of pages 244
Book size 216 x 279 mm
Publishing year 2019
Original publisher The World Bank
Published in India by .
Exclusive distributors Viva Books Private Limited
Sales territory India, Sri Lanka, Bangladesh, Pakistan, Nepal, .
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Fiscal policies can lay the foundation for low-carbon and climate-resilient development. Building on more than two decades of research in development and environmental economics, this book argues that fiscal instruments are crucial for mitigating and adapting to climate change while raising human welfare. By implementing environmental tax reforms, developing countries can reap a “triple dividend”: cutting pollution, raising economic activity, and generating development cobenefits, such as cleaner water, safer roads, and improvements in human health. These reforms need not harm competitiveness. Empirical evidence, including from Indonesia and Mexico, suggests that raising fuel prices can increase firm productivity. In addition, risk management strategies are needed to bolster economic resilience to climate-induced natural disasters. Modelling suggests that preventive public investments and measures to build fiscal buffers can help safeguard stability and growth in the face of rising climate risks. In this way, environmental tax reforms and climate risk-management strategies can lay the much-needed fiscal foundation for development and climate action.




About the Editor and Contributors

Executive Summary


Chapter 1: Benefits beyond Climate: Environmental Tax Reform (Dirk Heine and Simon Black) • Introduction • Why “climate action”? • Why “beyond climate”? • Why ETR? • How large is the environmental tax gap? • What is ETR’s effect on development and welfare? • What is ETR’s effect on equity, poverty, and competitiveness? • How suitable is ETR for developing countries? • How can developing countries best implement ETR? • Findings and policy recommendations • Notes • References

Chapter 2: Staying Competitive: Productivity Effects of Environmental Taxes (Antoine Coste, Massimiliano Cali, Nicola Cantore, and Dirk Heine) • Introduction • How can environmental taxes affect competitiveness, and what does the evidence tell us? • Estimating the impact of energy price increases on firms in developing countries • What policies can minimize adverse competitiveness impacts? • Conclusion • Notes • References

Chapter 3: Increasing Resilience: Fiscal Policy for Climate Adaptation (Lorenzo Forni, Michele Catalano, and Emilia Pezzolla) • Introduction • The macroeconomics of climate change • Leveraging fiscal policy to support climate change adaptation • An analytical framework that incorporates climate change in • medium-term fiscal planning • Adapting to the gradual effects of climate change • Adapting to extreme events • Policy implications • Conclusion • Notes • References

Chapter 4: Managing the Fiscal Risks Associated with Natural Disasters (Philip Schuler, Luiz Edgard Oliveira, Gianluca Mele, and Matias Antonio) • Introduction • Fiscal risks from climate change • The fiscal sustainability model • Application to Jamaica • Application to the Dominican Republic • Conclusions and policy recommendations • Notes • References

Appendix A: Benefits beyond Climate: Environmental Tax Reform

Appendix B: Staying Competitive: Productivity Effects of Environmental Taxes

Appendix C: Increasing Resilience: Fiscal Policy for Climate Adaptation

About the Editor:

Miria A. Pigato is a Lead Economist and Climate Lead in the World Bank’s Macroeconomics, Trade, and Investment Global Practice. Prior to assuming this position in 2016, she served as Practice and Sector Manager of the Macroeconomics and Fiscal Management Global Practice. She led senior policy dialogue on growth, climate, macro, fiscal, and trade policies and supervised more than 60 development policy operations for Africa, the Caribbean, Central Asia, Eastern Europe, the Middle East, and South Asia. Currently, Pigato coleads the Climate Action Peer Exchange, a capacity-building forum for peer-to-peer knowledge sharing and advisory support for Finance Ministries. She holds a master’s degree in economics at the London School of economics and a PhD in Economics at University College, London.

Target Audience:

This book will be useful to people interested in fiscal policies for development.

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