A dual-track transition to global carbon pricing
Open accessAbstract
Unilateral climate policies have been unable to achieve intended emissions reductions. We argue that international harmonization of climate policy beyond the Paris Agreement is the only way forward and that global carbon pricing, either through a tax or market, is the best available instrument to manage this. A foundation has already been laid, as current carbon pricing initiatives cover about 20% of global CO2 emissions. Since it limits free-riding by countries/jurisdictions, global carbon pricing is, in principle, behaviourally easier to negotiate than other instruments, such as emission targets or technical standards. To overcome political resistance, we propose a dynamic strategy consisting of two parallel tracks and five transition phases. The first track entails assembly of a carbon-pricing coalition that expands over time and exerts moral and economic pressure on non-members to join. The second track involves refocusing UN intergovernmental climate change negotiations on carbon pricing, potentially involving initially heterogeneous prices reflecting distinct income levels of countries, which then gradually converge. The dual tracks are designed to reinforce one another, increasing the likelihood of a successful outcome. The proposal results in a transition trajectory consisting of two interactive tracks and five phases, with specific attention to inequity within and among countries. We illustrate how such an approach could function with either a carbon tax or market.Key policy insights International harmonization of climate policies is required to achieve the deep cuts in emissions needed to meet the Paris Agreement’s 2°C or 1.5°C target.A focus on carbon pricing – either through taxation or emissions trading – has multiple strengths: it can be easily compared and harmonized among countries; it can be gradually strengthened over time; it moderates freeriding and fear of competitiveness losses; and it automatically generates revenues to compensate low-income households and countries.Formation of a carbon-pricing coalition would enable such a group to speak with a single, powerful voice at UN climate change conferences. It would put economic and moral pressure on non-members, stimulating them to join and show a constructive attitude in ongoing UN climate change negotiations.
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Dual track approaches proposed for carbon pricing and convergence seem doomed to fail.
“A global agreement on commoncarbon pricing is evidently impossible, and even 'dual track' approaches proposed for carbon pricing and convergence (173) seem 'doomed to fail' (174).”
From Carbon Leakage, Consumption, and Trade (2022) · cites this paper as [173]
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A game theory approach to carbon pricing and subsidies for efficient clean energy deployment
Salimian, S., & Salimian, S. (2026) · Future Business Journal · doi:10.1186/s43093-026-00790-0 · Cited by 1 · see citing works
SAVI, A. V., Santos, L. B. M., Carra, S. H. Z., Tosto, G., & Savi, M. (2026) · Sustainability · doi:10.3390/su18136525 · Cited by 1 · see citing works
Lobbying, Time Preferences and Emission Tax Policy
Schrieks, T., Swart, J., Zhou, F., & Botzen, W. J. W. (2022) · Economics of Disasters and Climate Change · doi:10.1007/s41885-022-00123-9 · Cited by 1 · see citing works
Self-citationTransformation of the “Climate Club” Concept: From Theory to Practice (Review)
Popova, I. (2023) · International Organisations Research Journal · doi:10.17323/1996-7845-2023-01-08 · Cited by 1 · see citing works
Aigner, E., Görg, C., Krisch, A., Madner, V., Muhar, A., Novy, A., Posch, A., Steininger, K. W., Bohunovsky, L., Essletzbichler, J., et al. (2023) · Springer eBooks · doi:10.1007/978-3-662-66497-1_3 · Cited by 1 · see citing works
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van den Bergh, J. C. J. M., Angelsen, A., Baranzini, A., Botzen, W. J. W., Carattini, S., Drews, S., Dunlop, T., Galbraith, E. D., Gsottbauer, E., Howarth, R. B., et al. (2020) · Climate Policy · doi:10.1080/14693062.2020.1827537
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Conditions and pathways for a climate club to reach a more ambitious global treatyPreprint
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The Effectiveness of Carbon Pricing: A Global Evaluation
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Corporate Climate Strategies and the Future of Green Capitalism
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The Paradox of Climate Justice
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- Authors
- van den Bergh, J. C. J. M., Angelsen, A., Baranzini, A., Botzen, W. J. W., Carattini, S., Drews, S., Dunlop, T., Galbraith, E., Gsottbauer, E., Howarth, R. B., Padilla, E., Roca, J., & Schmidt, R. C.
- Affiliations
- Institute of Environmental Science and Technology, Universitat Autònoma de Barcelona, Barcelona, Spain
- Norwegian University of Life Sciences (NO)
- HES-SO University of Applied Sciences and Arts Western Switzerland (CH)
- Utrecht University (NL)
- Georgia State University (US)
- Universitat Autònoma de Barcelona (ES)
- Joint Research Centre (IT)
- Institució Catalana de Recerca i Estudis Avançats (ES)
- Universität Innsbruck (AT)
- Dartmouth College (US)
- Department of Economics, Faculty of Economics and Business, Universitat de Barcelona, Barcelona, Spain
- FernUniversität in Hagen (DE)
- ORCID
- Venue
- Climate Policy
- Publisher
- Informa UK Limited
- Published
- 2020-07-31
- Volume
- 20
- Issue
- 9
- Pages
- 1057-1069
- ISSN
- 1469-3062 (ISSN-L)
- 1752-7457
- OpenAlex
- W3044774837
- Cited by
- 50
- References
- 80
- Citations by year
- 2026: 8 · 2025: 5 · 2024: 5 · 2023: 13 · 2022: 9 · 2021: 7 · 2020: 3
- FWCI
- 6.80
- Type
- journal article
- Language
- en
- Open access
- hybrid
- doi.org
- Licence
- Locations
- Climate Policy (publishedVersion, cc-by-nc-nd)
- RePEc: Research Papers in Economics (submittedVersion)
- Dipòsit Digital de Documents de la UAB (Universitat Autònoma de Barcelona) (submittedVersion, public-domain)
- Dipòsit Digital de la Universitat de Barcelona (Universitat de Barcelona) (submittedVersion, public-domain)
- LA Referencia (Red Federada de Repositorios Institucionales de Publicaciones Científicas) (submittedVersion, public-domain)
- Utrecht University Repository (Utrecht University) (submittedVersion, other-oa)
- ArODES (HES-SO (https://www.hes-so.ch/)) (submittedVersion)
- VU Research Portal (submittedVersion, other-oa)
- Open Research (University of Surrey) (submittedVersion, cc-by)
- Data Archiving and Networked Services (DANS) (submittedVersion, other-oa)
- Funders
- Spanish Ministry of Science, Innovation and Universities (“María de Maeztu” program MDM-2015-0552)
- Schweizerischer Nationalfonds zur Forderung der Wissenschaftlichen Forschung (P2SKP1_165028)
- H2020 European Research Council (741087)
- Topics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Climate Change Policy and Economics
- Physical Sciences › Environmental Science › Management, Monitoring, Policy and Law › International Environmental Law and Policies
- Physical Sciences › Environmental Science › Global and Planetary Change › Sustainability and Climate Change Governance
- Keywords
- carbon tax, emissions trading, Paris Agreement, UN climate negotiations, free-riding
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