FEEM working papers "Note di lavoro" series
2015 .094

Using Carbon Pricing Revenues to Finance Infrastructure Access

Authors: Michael Jakob,  Claudine Chen, Sabine Fuss, Annika Marxen, Narasimha Rao, Ottmar Edenhofer
Series: Climate Change and Sustainable Development  
Editor: Carlo Carraro
Keywords: Carbon Pricing, Infrastructure, Economic Development
JEL n.: Q31, H54


Introducing a price on greenhouse gas emissions would not only contribute to reducing the risk of dangerous anthropogenic climate change, but would also generate substantial public revenues. Some of these revenues could be used to cover investment needs for infrastructure providing access to water, sanitation, electricity, telecommunications and transport. In this way, emission pricing could promote sustainable socio-economic development by safeguarding the stability of natural systems which constitute the material basis of economies while at the same time providing public goods that are essential for human well- being. An analysis of several climate scenarios with different stabilization targets and technological assumptions reveals that emission pricing has a substantial potential to close existing access gaps.


Suggested citation: Jakob, M., C. Chen, S. Fuss, A. Marxen, N. Rao, O. Edenhofer, 'Using Carbon Pricing Revenues to Finance Infrastructure Access', Nota di Lavoro 94.2015, Milan, Italy: Fondazione Eni Enrico Mattei

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