BEAR, Berkeley Economic Advising and Research

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World Bank: the development benefits of carbon pricing

A guide for policy makers, prepared for the World Bank’s Partnership for Market Readiness, on the benefits of carbon pricing beyond cutting emissions, and how to measure and model them.

World Bank, Partnership for Market ReadinessBeyond Mitigation: Quantifying the Development Benefits of Carbon PricingWorld Bank, 2021Open the public record (PDF)

The question

Beyond cutting emissions, what development benefits can carbon pricing deliver, and how can policy makers measure them and build them into economic models?

What BEAR found

7Areas of development benefit the guide works through

The guide identifies seven main areas of benefit from carbon pricing: air quality, water, soil health, transport, fiscal policy, the balance of payments and technological change.

For each, it shows how to identify, measure and build the benefit into computable general equilibrium modeling, while flagging distributional costs and the measures that offset them.

Method

A synthesis of the evidence linking carbon prices to each benefit area, with partial and general equilibrium modeling guidance and worked examples.

Team

David Roland-Holst, Drew Behnke, Sam Heft-Neal and Ryan Triolo.

Public record

How to cite

Partnership for Market Readiness (2021). Beyond Mitigation: Quantifying the Development Benefits of Carbon Pricing. Washington, DC: World Bank. Prepared by Berkeley Economic Advising and Research. License: CC BY 3.0 IGO.

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