Posted on June 11, 2015 by iMFdirect
By Min Zhu and Sarwat Jahan
(Versions in Español, عربي)
Countries will start a new chapter in their development this year with the United Nation’s Sustainable Development Goals. Designed to replace the Millennium Development Goals, these new goals will broaden the vision of development to embrace economic, social, and environmental issues. To achieve these goals, two elements are critical: money and the right policies to use the money. The IMF, along with many others in the global community, will partner with countries to bring these two elements together.
Filed under: Africa, Asia, Civil Society, Economic outlook, Economic research, Emerging Markets, Finance, Fiscal policy, Global Governance, growth, IMF, International Monetary Fund, Investment, Latin America, LICs, Low-income countries, Politics | Tagged: carbon price, Cote d’Ivoire, developing countries, development financing, energy price reform, financing for development, frontier economies, Ghana, Kenya, low income countries, Millennium Development Goals, Min Zhu, Peru, senegal, sustainable development Goals, tax reform, trade, United Nations, Vietnam, Zambia | Leave a comment »
Posted on November 23, 2009 by iMFdirect
By Carlo Cottarelli
As world leaders gather in Copenhagen, climate change is again in the headlines. The science of the issue can get pretty incomprehensible pretty quickly. And the politics are clearly very ugly. Let’s not forget, however, that much of the economics is simple.
It’s an externality, stupid—so price it
Climate change is an “externality” problem. Individuals, firms, and, yes, governments, do not take full account of the harm that others suffer when they emit greenhouse gases. So they emit too much. And the best way to stop them doing this is to charge them a price for the carbon content of what they emit: a “carbon price.”
Admittedly, climate change is a particularly complicated externality. Since the damage will fall largely on future generations, the proper price depends very much on how we value their well-being relative to ours. The importance of such long-lived investments as power-stations, and the heavy sunk costs of investing in new technologies, mean that the carbon prices people expect in the future are even more important than the price now. And the fact that the world’s supply of fossil fuels is ultimately fixed means that the effect of carbon prices on total emissions is not as clear cut as it may seem.
Emission reductions solely by those countries historically responsible for the accumulated stock of emissions will not come close to solving the climate problem (photo: Newscom)
Filed under: Economic Crisis | Tagged: cap and trade, carbon, carbon price, Climate change, Copenhagen, greenhouse gases, oil | 6 Comments »