Sequencing, spending, and symbolism: Low carbon taxes primarily serve purposes other than emissions reduction

Lilliestam J, Eckardt J, Bersalli G (2025)

Publication Type: Journal article

Publication year: 2025

Article Number: 101390

DOI: 10.1016/j.oneear.2025.101390

Abstract

Carbon taxation is generally viewed as a central climate policy instrument to decrease and eventually eliminate carbon emissions. In many countries, however, carbon taxes are set and are kept too low to strongly reduce emissions, suggesting that climate change mitigation may not be their primary rationale. We analyze the tax design, policy evolution, and governmental justification of each of the 19 initially low national carbon taxes implemented in 1990–2023. We show that several countries followed a within-policy sequencing rationale: an initially low carbon tax set to increase to emission-reducing levels later, but sometimes slowly, up to decades after implementation. Some taxes were designed to fund other climate policies. Most initially low carbon taxes primarily followed fiscal rationales or were implemented to meet international expectations. We conclude that the primary rationale or priority outcome for enacting carbon taxes is not always to reduce emissions.

Authors with CRIS profile

Johan Lilliestam Lehrstuhl für Sustainability Transition Policy Germán Bersalli Lehrstuhl für Sustainability Transition Policy

Involved external institutions

Universität Potsdam DE Germany (DE)

How to cite

APA:

Lilliestam, J., Eckardt, J., & Bersalli, G. (2025). Sequencing, spending, and symbolism: Low carbon taxes primarily serve purposes other than emissions reduction. . https://doi.org/10.1016/j.oneear.2025.101390

MLA:

Lilliestam, Johan, Jakob Eckardt, and Germán Bersalli. "Sequencing, spending, and symbolism: Low carbon taxes primarily serve purposes other than emissions reduction." (2025).

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