Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/260251
Year of Publication: 
2018
Series/Report no.: 
Working Paper No. 2018:22
Publisher: 
Lund University, School of Economics and Management, Department of Economics, Lund
Abstract: 
This paper considers the potential inflation effects of a global carbon price on consumer prices, investment prices, export prices, and import prices. We estimate the effects under three different scenarios. The results clearly indicate that the inflation effects in developed countries of a 100 USD/ton carbon price are small. For developing countries, the inflation effect is larger and potentially too large for it to be politically feasible to introduce a global carbon price. However, a simple adjustment of the price based on the price level in each country equalizes the inflation effects across all countries, whereby a global carbon price is more likely to be implemented.
Subjects: 
carbon price
inflation
consumer prices
export prices
imports prices
investment prices
monetary policy
JEL: 
E31
E52
Q54
Q58
Document Type: 
Working Paper

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