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Overview of carbon pricing policies in Latin America and the Caribbean, 2025: an analysis of their effectiveness and guidelines for implementation

5 Nov 2025 | Publication

This document presents an overview of carbon pricing policies in Latin America and the Caribbean. It focuses on the characteristics of carbon pricing instruments, both explicit, such as carbon taxes and emissions trading systems, and implicit, such as fuel taxes, the social price of carbon and the reduction of fossil fuel subsidies. The document also provides an analysis of the effects of related policies (e.g. subsidies and elasticities) on the  effectiveness of carbon pricing, and includes the estimation of an econometric model that measures the effectiveness of carbon pricing in terms of re…

Economic policy and climate change: carbon pricing in Latin America and the Caribbean

29 Jan 2025 | Publication

Carbon pricing is one of the public policy options for discouraging production activities and consumption patterns that generate greenhouse gas (GHG) emissions. This study provides an overview of carbon pricing in Latin America and the Caribbean, along with other associated economic policies. It reviews the situation regarding explicit carbon pricing via carbon taxes and emissions trading systems and the use of implicit pricing through the inclusion of the social price of carbon in public investment project evaluation procedures. It draws attention to the fact that very little use is being mad…

2 search results. Displaying 20 per page.