Better use of energy taxes could strengthen developing country finances while cutting pollution, says OECD
By OECD Report
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Developing countries could raise much-needed public revenues, while cutting emissions and air pollution, by making better use of energy taxes and reducing energy subsidies, according to a new OECD report.
Taxing Energy Use for Sustainable Development: Opportunities for energy tax and subsidy reforms in selected developing and emerging economies examines energy taxation in 15 developing and emerging economies in Africa, Asia and Latin America and the Caribbean.
The report finds that well-designed energy and carbon taxes can strengthen efforts to improve domestic revenue mobilisation. While the revenue potential varies across countries, the report finds that, on average, the countries could generate revenue equivalent to around 1% of GDP if they set carbon rates on fossil fuels equivalent to EUR 30 per tonne of CO