Is a higher emphasis on carbon tax needed to take care of market failures in Indian decarbonization efforts?
With the International Monetary Fund endorsing the European Union’s plan to impose carbon levies on imports, India can be among the first movers in the developing world in taxing and switching from carbon-intensive fuels (like coal), says this report from The Hindu – https://lnkd.in/g_tt6wC
An optimal pricing of carbon has been shown to be an effective and scalable mechanism to make low carbon energy sources more competitive.
In my opinion, there are few levers that are as potent to shape human – and business – behaviour like price, and more so in countries such as India.
What do you think?
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EDUARDO Araral – Lee Kuan Yew School of Public Policy
See my LinkedIn post on this topic
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