Cancellation – Friday Lunch Meeting Debate, Jörg Peters, November 17th, 2023

Ongoing global warming is due to historic emissions by Western countries and, more recently, high economic growth rates in Asia and Latin America have contributed significantly to the carbon stock as well. Sub-Saharan Africa (SSA) for long has been in the spotlight only for climate change adaptation but is increasingly entering the debate as a potential future emitter. Accordingly, there has been a push to tax carbon in SSA. Indeed, carbon taxation is often praised as the go-to instrument for efficient climate policy. In this comment, we argue that it is wrong to tax carbon in SSA. It is likely to be ineffective, and it almost certainly hurts the poor. As an alternative, climate policy should focus on adaptation in least developed countries and for more advanced ones on preventing carbon-lock in effects by disruptive green investments.

 

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