Taxing Carbon for Development: Lessons from British Columbia

Case Summary: 

The British Columbia (BC) carbon tax stands out as a model for decarbonizing development because the policy design led to several positive outcomes, including: a net increase in economic growth; a decrease in income inequality and improvement of the rural-urban divide; a significant reduction in GHG emissions; and increased public support of the carbon tax reform over time. These positive economic and environmental impacts are key expectations of climate policy in lower-middle-income countries (LMICs). The features that made this policy successful in North America may generate even greater outcomes in LMICs.

Action Area 
Planning and Implementation Activity 
Developing Strategies and Plans
World Bank
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