Fredrik N G Andersson
Associate professor
Estimates of the inflation effect of a global carbon price on consumer, investment, export, and import prices
Author
Summary, in English
This paper considers the potential inflation effects of a global carbon price on consumer prices, investment prices, export prices, and import prices. We estimate the effects under three different scenarios. The results clearly indicate that the inflation effects in developed countries of a 100 USD/ton carbon price are small. For developing countries, the inflation effect is larger and potentially too large for it to be politically feasible to introduce a global carbon price. However, a simple adjustment of the price based on the price level in each country equalizes the inflation effects across all countries, whereby a global carbon price is more likely to be implemented.
Department/s
- Department of Economics
Publishing year
2018-09-04
Language
English
Publication/Series
Working Papers
Issue
2018:22
Links
Document type
Working paper
Topic
- Economics
Keywords
- carbon price
- inflation
- monetary policy
- consumer prices
- investment prices
- export prices
- import prices
- carbon price
- inflation
- consumer prices
- export prices
- imports prices
- investment prices
- monetary policy
- E31
- E52
- Q54
- Q58
Status
Published