Effects of Carbon Pricing and Other Climate Policies on CO 2 Emissions

In this study, we provide

ex post

empirical analysis of the effects of climate policies on carbon emissions at the aggregate national level, using a comprehensive database of 121 countries. Carbon taxes and emissions trading systems (ETS), and the overall stringency of climate policies are considered. We use dynamic panel regressions, controlling for macroeconomic factors (economic development, GDP growth, urbanisation and the energy mix). Higher carbon taxes and ETS prices reduce carbon emissions. An increase in carbon taxes by $10 per ton of CO

2

reduces CO

2

emissions per capita by 1.3% in the short run and by 4.6% in the long run.