Emission pricing in developing countries

Abstract

Implementing emissions pricing in developing countries calls for increased focus on the political, economic, and social challenges these countries face. By discussing various types of emissions pricing, including carbon taxes and emissions trading schemes, the chapter highlights the effectiveness and limitations of these approaches in the context of developing economies. The chapter also explores the role of fossil fuel subsidy reforms and other complementary measures necessary to support the implementation of carbon pricing. We conclude with a discussion on the critical factors that determine the success of emissions pricing in these regions, emphasizing the need for tailored policy designs and supportive reforms.