The way forward for carbon pricing

carbon pricing globe

The way forward for carbon pricing

Monday, 26 April 2021 - 5:00pm to 6:30pm
Online Event
Ian Parry (IMF)
Michael Mehling (University of Strathclyde; Massachusetts Institute of Technology)
Daniel Hardy (St Antony’s College, Oxford)
Franziska Funke (Oxford Martin School)
European Studies Seminar

Please register here

This online event features as one of several this term which focusses on 'Political economy of European climate action', and is hosted by the European Political Economy Project (EUPEP) at the European Studies Centre.

The European Union and other countries are moving forward with higher carbon pricing to fight climate change, but many design issues and operational challenges remain to be overcome to arrive at a carbon price both effectively high and politically feasible. Challenges span a spectrum from the domestic—how to design a tax (or pricing mechanism) which is adequately broad and politically acceptable—to the international—how to avoid some reluctant-to-tax countries free-riding on the efforts of other regions. On the domestic side, the equity of the tax and the use of its revenue are seen as vital determinants of its feasibility. On the international side, the IMF has proposed a carbon-price floor, and the EU is working on a carbon border tax adjustment. This seminar will take stock of the latest thinking on carbon-pricing design, and discuss how to overcome the outstanding obstacles to operationalising adequate carbon taxation.

Event image courtesy of IMF.

Ian Parry is the Principal Environmental Fiscal Policy Expert in the Fiscal Affairs Department of the IMF. Prior to joining the IMF in 2010, Parry held the Allen V. Kneese Chair in Environmental Economics at Resources for the Future where he worked for 15 years. He has a PhD in economics from the University of Chicago in 1993. Parry’s current research focuses on country-level analysis of carbon taxes and other policies countries need to implement their mitigation objectives submitted for the 2015 Paris Agreement and the broader fiscal and economic impacts of those policies. He proposes a carbon price floor arrangement among large emitters to scale up global level mitigation. Parry also quantifies the broader environmental (e.g., local air pollution) costs of fossil fuel use at the country level and efficient levels of fuel prices needed to reflect supply and environmental costs. His work is published in academic journals, cross-country reports, and used in technical assistance and IMF bilateral surveillance reports.

Michael Mehling is Deputy Director of the MIT Center for Energy and Environmental Policy Research and a Professor of Practice at the University of Strathclyde Law School. He is also a non-executive director with Ecologic Institute in Berlin, a Member of Climate Strategies in London, and a founding board member of Ecologic Institute in Washington DC, the Blockchain & Climate Institute (BCI), and the European Roundtable on Climate Change and Sustainable Transition (ERCST). His research and advisory work addresses climate policy design and implementation, including emissions leakage and border carbon adjustments. He is founder and Editor-in-Chief of the peer-reviewed Carbon & Climate Law Review and has also co-Chaired the Carbon Pricing Leadership Coalition (CPLC) Scientific Committee. Trained as a lawyer (LL.M., Ph.D.; admitted to the German Bar), he is a German and American citizen.

Franziska Funke has been a Visiting Researcher with the Institute for New Economic Thinking, University of Oxford, and concurrently Research Assistant on the Oxford Martin School project "Optimal meat taxation in the behavioural-environmental second-best" funded by the Livestock, Environment and People (LEAP) Programme. She has recently joined the Technical University of Berlin as an Associate Researcher and Doctoral Candidate. Franziska's research interests include climate policy analysis, with a focus on the distributional impacts and political feasibility of market-based climate policies. She has previously been involved with the United Nations Environment Programme in Paris and the International Institute for Sustainable Development in Geneva. She holds an MSc in Philosophy and Public Policy from the London School of Economics and a BA in Economics and Political Science from Münster University, Germany.

This event will be chaired by Daniel Hardy (St Antony's College, Oxford). 

This event is taking place online using Zoom. The link to REGISTER via Zoom is available by clicking HERE.

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