fuel taxes less resilient than emission permit prices amid high inflation

Tax rates in the road transport sector decreased in a large majority of OECD and G20 countries between 2021 and 2023, due in part to government support and high inflation, eroding the carbon pricing signals designed to alter consumer behaviour and help countries meet climate change objectives, according to a new OECD report: Effective Carbon Rates 2023: Pricing Greenhouse Gas Emissions through Taxes and Emissions Trading. Emission trading permit prices ...