Coordination between environment, poverty, and SDGs through a carbon tax

  • Araceli Ortega Díaz Universidad Autónoma de Nuevo León
  • Zeus Guevara Tecnológico de Monterrey
  • Joana Chapa Cantú Universidad Autónoma de Nuevo León
Keywords: CGEM, SDG, greenhouse gas emissions, carbon tax, poverty
JEL Classification: C68, O1, Q56, H23, I32

Abstract

Since 2014, Mexico has implemented a carbon tax policy, which has not reached the expected revenue, failed at decreasing emissions, and had a regressive effect. Moreover, there has not been coordination between climate and other Sustainable Development Goals (SDGs). To explore this, we perform a Computable General Equilibrium analysis to simulate a coordinated carbon tax policy aimed at reaching the SDGs goals related to poverty, mortality, and education. The results suggest that the required carbon tax rate for approaching SDGs targets by 2030 should be around 15%, which is higher than the actual rate and may cause other distortionary effects.

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Published
13-07-2022
How to Cite
Ortega DíazA., GuevaraZ., & Chapa CantúJ. (2022). Coordination between environment, poverty, and SDGs through a carbon tax. Estudios Económicos, 37(2). https://doi.org/10.24201/ee.v37i2.433
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