02227cas a2200265 a 4500 AALejournalIMF014707 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498358279 1018-5941 BD-DhAAL BD-DhAAL Parry, Ian. How Much Carbon Pricing is in Countries' Own Interests? : The Critical Role of Co-Benefits / Ian Parry, Chandara Veung, Dirk Heine. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper calculates, for the top twenty emitting countries, how much pricing of carbon dioxide (CO2) emissions is in their own national interests due to domestic co-benefits (leaving aside the global climate benefits). On average, nationally efficient prices are substantial, USD 57.5 per ton of CO2 (for year 2010), reflecting primarily health co-benefits from reduced air pollution at coal plants and, in some cases, reductions in automobile externalities (net of fuel taxes/subsidies). Pricing co-benefits reduces CO2 emissions from the top twenty emitters by 13.5 percent (a 10.8 percent reduction in global emissions). However, co-benefits vary dramatically across countries (e.g., with population exposure to pollution) and differentiated pricing of CO2 emissions therefore yields higher net benefits (by 23 percent) than uniform pricing. Importantly, the efficiency case for pricing carbon's co-benefits hinges critically on (i) weak prospects for internalizing other externalities through other pricing instruments and (ii) productive use of carbon pricing revenues. Mode of access: Internet Heine, Dirk. Veung, Chandara. IMF Working Papers; Working Paper ; No. 2014/174 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/174/001.2014.issue-174-en.xml IMF e-Library