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Political Science > Environmental Policy

You are looking at 1 - 10 of 14 items for :

  • Type: Journal Issue x
  • Taxation, Subsidies, and Revenue: General x
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Cover IMF Staff Country Reports
Kenya: Seventh and Eighth Reviews Under the Extended Fund Facility and Extended Credit Facility Arrangements, Requests for Reduction of Access, Augmentation and Rephasing of Access Under the Arrangements, Modifications of Performance Criteria, Waiver of Nonobservance of Performance Criteria, and Review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Kenya
International Monetary Fund. African Dept.
Kenya is confronted with the need to chart a course that attends directly to the recent public outcry. The widespread protests that started in June and resulted in tragic loss of lives and injuries were triggered by the authorities’ efforts to correct a large tax revenue shortfall in FY2023/24 through revenue raising proposals in the 2024 Finance Bill, some of which were unpopular or seen as regressive. The protests forced the President to withdraw the Bill, introduce significant spending cuts through a Supplementary Budget in July, and reconstitute the Cabinet in August. Persistent difficulties in mobilizing revenue coupled with spending rigidities have led to a further accumulation of pending bills, and necessitated deep cuts in development spending, with potential for knock-on effects on growth and debt sustainability. Against this backdrop, preceded by large exogenous shocks (COVID-19, global developments impacting import price and affordable access to market finance, and severe multi-season droughts), the authorities face a complex and difficult balancing act: meeting critical spending needs for priority areas (social programs, health, and education), servicing large upcoming debt obligations, and boosting domestic revenues. Earlier in the year, Kenya addressed the exceptional balance of payments (BoP) needs associated with repayment of the June 2024 US$2 billion Eurobond, boosting market confidence that helped strengthen the shilling and build reserves. Meanwhile, fiscal pressures continue, including from uncertainty surrounding the constitutionality of the 2023 Finance Act on which the Supreme Court’s decision is awaited.
Keywords:
ECF arrangement; government initiative; implementation framework; Mombasa climate change action plan; ECF review; Debt sustainability analysis; Debt sustainability; Global; Africa
Cover IMF Working Papers
Cross-Border Impacts of Climate Policy Packages in North America
Jean-Marc Fournier, Tannous Kass-Hanna, Liam Masterson, Anne-Charlotte Paret, and Sneha D Thube
We quantify cross-border effects of the recent climate mitigation policies introduced in Canada and the U.S., using the global general equilibrium model IMF-ENV. Notably, with the substantial emission reductions from Canada’s carbon tax-led mitigation policies and the U.S.’ Inflation Reduction Act, these two countries would bridge two-thirds of the gap toward their Nationally Determined Contribution (NDC) goals. While the broadly divergent policies are believed to elicit competitiveness concerns, we find the aggregate cross-border effects within North America to be very limited and restricted to the energy intensive and trade exposed industries. Potential carbon leakages are also found to be negligible. A more meaningful difference triggered by policy heterogeneity is rather domestic, especially with U.S. subsidies increasing energy output while the Canada model with a carbon tax would marginally decrease it. This analysis is complemented by a stylized model illustrating how such divergence can affect the terms of trade, but also how these effects can be countered by exchange rate flexibility, border adjustments or domestic taxation.
Keywords:
Climate Policy; Climate Change Policy; Nationally Determined Contributions (NDCs); Mitigation; Climate subsidies; Carbon Tax; Carbon pricing; Spillovers; North America; Global; IMF-ENV model; Computable General Equilibrium (CGE) models; Competitiveness; Greenhouse Gas Emissions (GHG); Revenue Recycling; Inflation Reduction Act (IRA); Power; Electricity; climate policy package; mitigation policy; green subsidy; Canada's Carbon pricing policy; divergent policy
Cover IMF Working Papers
Firms’ Resilience to Energy Shocks and Response to Fiscal Incentives: Assessing the Impact of 2022 Energy Crisis
David Amaglobeli, Joaquim Guilhoto, Samir Jahan, Salma Khalid, Waikei R Lam, Gregory M Legoff, Brent Meyer, Xuguang Simon Sheng, Pawel Smietanka, Sonya Waddell, and Daniel Weitz
The energy price shock in 2022 led to government support for firms in some countries, sparking debate about the rationale and the nature of such support. The results from nationally representative firm surveys in the United States and Germany indicate that firms in these countries were generally resilient. Coping strategies adopted by firms included the pass-through of higher costs to consumers, adjustment of profit margins (United States) and investments in energy saving and efficiency (Germany). Firms in energy-intensive industries would have been significantly more affected if international energy prices were fully passed through to domestic prices in Europe. Survey responses further reveal that most firms are uncertain about the impact of recent policy announcments on green subsidies. Firms take advantage of fiscal incentives to accelerate their climate-related investment plans are often those that have previous plans to do so. These findings suggest better targeting and enhancing policy certainty will be important when facilitate the green transition among firms.
Keywords:
Energy prices; Subsidies; Survey; Cost-Push Model; Input Output Table; Firm Behavior; energy price shock; D. government intervention; firms' resilience; investment plan; Energy conservation; Inflation; Greenhouse gas emissions; Climate policy; Global; Europe
Cover IMF Staff Country Reports
Sénégal: Premiè Res Revues des Accords au Titre du Mécanisme Élargi de Crédit, de la Facilité Élargie de Crédit et de la Facilité pour la Résilience et la Durabilité ; Demandes de Modification de Critè Res de Réalisation Quantitatifs et de Réechelonnement de L'accès — Communiqué DE Presse, Rapport des Services du FMI et Déclaration de L'Administrateur pour le Sénégal
International Monetary Fund. African Dept.
The Senegalese economy continues to face headwinds. Despite the difficult socioeconomic environment, the authorities remain committed to the program objectives. Some of the downside risks identified at the time of the program request have materialized, leading to a downward revision of near-term growth. Inflation is projected to decline more gradually than anticipated. While near-term risks remain titled to the downside, with appropriate policies and the start of hydrocarbon production, medium-term prospects are favorable.
Keywords:
Senegalese authorities; RSF arrangement; government infrastructure loan; unfaltering commitment; RSF reform area; Policy discussion; Resilience and Sustainability Facility arrangement; Climate change; Budget planning and preparation; Climate finance; Global; West Africa; Middle East
Cover IMF Staff Country Reports
Senegal: First Reviews Under the Extended Fund Facility, the Extended Credit Facility, and the Resilience and Sustainability Facility Arrangements, Requests for Modification of the Quantitative Performance Criteria and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for Senegal
International Monetary Fund. African Dept.
This paper presents Senegal’s First Reviews under the Extended Fund Facility, The Extended Credit Facility, and the Resilience and Sustainability Facility (RSF) Arrangements, Requests for Modification of the Quantitative Performance Criteria Rephasing of Access. The Senegalese economy continues to face headwinds as it recovers from the coronavirus disease 2019 pandemic. The Senegalese economy continues to face headwinds. Some of the downside risks identified at the time of the program request are materializing, leading to a downward revision of growth and higher inflation projected for 2023/24. Near-term risks remain titled to the downside, but medium-term prospects remain favorable with appropriate policies and the start of hydrocarbon production. Significant progress has been achieved in implementing structural reforms. The authorities are implementing the structural reforms agreed under the program, including steps to strengthen revenue administration and public financial management, enhance governance and improve the anti-corruption frameworks. Reforms agreed under the RSF are being implemented steadily.
Keywords:
Senegalese authorities; RSF arrangement; government infrastructure loan; unfaltering commitment; RSF reform area; Policy discussion; Resilience and Sustainability Facility arrangement; Climate change; Budget planning and preparation; Climate finance; Global; West Africa; Middle East
Cover IMF Working Papers
Climate Change Mitigation and Policy Spillovers in the EU’s Immediate Neighborhood
Mr. Serhan Cevik, Mr. Nadeem Ilahi, Mr. Krzysztof Krogulski, Ms. Grace B Li, Sabiha Mohona, and Yueshu Zhao
EU’s neighborhood countries (EUN) have lagged the EU on emissions mitigation; coal-heavy power generation and industrial sectors are a key factor. They have also trailed EU countries in emissions mitigation policies since 2000, with little use of market-based instruments, and they still have substantial fossil fuel subsidies. Increasingly stringent EU mitigation policies are asociated with lower emissions in EUN. Overall output effects of the CBAM, in its current form, would be limited, though exports and emissions-intensive industries could be heavily impacted. A unilaterally adopted economywide carbon tax of $75 per ton would significantly lower emissions by 2030, with minimal consequences for output or household welfare, though a safety net for the affected workers may be necessary. To become competitive today by attracting green FDI and technology, overcoming infrastructure constraints and integrating into EU’s supply chains, EUN countries would be well served to front load decarbonization, rather than postpone it for later.
Keywords:
Climate change; carbon emissions; climate change mitigation; carbon tax; Europe; EU mitigation policy; EUN country; policy spillover; neighborhood country; Greenhouse gas emissions; Climate policy; Global
Cover IMF Staff Country Reports
Senegal: Requests for an Extended Arrangement Under the Extended Fund Facility, an Arrangement Under the Extended Credit Facility, and an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Senegal
International Monetary Fund. African Dept.
This paper presents Senegal’s Requests for an Extended Arrangement under the Extended Fund Facility (EFF), an Arrangement under the Extended Credit Facility (ECF), and an Arrangement under the Resilience and Sustainability Facility (RSF). The Senegalese economy has been severely impacted by different shocks including the rising food and energy prices, tightening financial conditions, weaker external demand, and the US dollar appreciation. The EFF/ECF-supported program will help meet Senegal’s protracted balance of payment needs and address macroeconomic imbalances. Policy priorities under the EFF/ECF program include reducing debt vulnerabilities by embarking on a growth-friendly fiscal consolidation, strengthening governance, and delivering a more inclusive and job-rich growth. The RSF aims to tackle longer-term structural challenges related to climate change and the implementation of climate policies. The RSF will support Senegal's climate change mitigation objectives, accelerate the country’s climate change adaptation, and support work to mainstream climate change considerations into the budget process.
Keywords:
authorities' fiscal policy goal; Senegalese authorities; policy reform; EFF request; RSF arrangement; ECF-supported program; Climate change; Budget planning and preparation; Global; West Africa
Cover IMF Staff Country Reports
Senegal: Requests for an Extended Arrangement Under the Extended Fund Facility, an Arrangement Under the Extended Credit Facility, and an Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Senegal
International Monetary Fund. African Dept.
This paper presents Senegal’s Requests for an Extended Arrangement under the Extended Fund Facility (EFF), an Arrangement under the Extended Credit Facility (ECF), and an Arrangement under the Resilience and Sustainability Facility (RSF). The Senegalese economy has been severely impacted by different shocks including the rising food and energy prices, tightening financial conditions, weaker external demand, and the US dollar appreciation. The EFF/ECF-supported program will help meet Senegal’s protracted balance of payment needs and address macroeconomic imbalances. Policy priorities under the EFF/ECF program include reducing debt vulnerabilities by embarking on a growth-friendly fiscal consolidation, strengthening governance, and delivering a more inclusive and job-rich growth. The RSF aims to tackle longer-term structural challenges related to climate change and the implementation of climate policies. The RSF will support Senegal's climate change mitigation objectives, accelerate the country’s climate change adaptation, and support work to mainstream climate change considerations into the budget process.
Keywords:
authorities' fiscal policy goal; Senegalese authorities; policy reform; EFF request; RSF arrangement; ECF-supported program; Climate change; Budget planning and preparation; Global; West Africa
Cover IMF Staff Country Reports
Benin: Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements-Press Release; Staff Report; Debt Sustainability Analysis and Statement by the Executive Director for Benin
International Monetary Fund. African Dept.
This paper presents Benin’s Second Review under the Extended Fund Facility and the Extended Credit Facility Arrangements. Program performance has been robust, with all end-September and end-December 2022 performance criteria, indicative targets met, and all structural benchmarks implemented. Revenue-based fiscal consolidation is underway, after three years of warranted policy accommodation amidst repeated and severe exogenous shocks. After three years of warranted policy accommodation, fiscal consolidation is underway, underpinned by robust tax collection and spending reprioritization to shield social programs and help meet Benin’s large development and security-related needs. The recently established social registry is much needed to channel timely support to vulnerable households in a world more prone to shocks. Its swift full operationalization is critical to improve the targeting and efficiency of social programs as their coverage expands. The structural reform agenda is advancing, including with the completion and publication of the IMF governance diagnostic, the adoption of a financial inclusion strategy, the digitalization of land title requests, and the submission to Parliament of a draft law to ensure the sustainability of the authorities’ flagship school feeding program.
Keywords:
IMF governance diagnostic; ECF review; action program II; Policy discussion; IMF diagnostic; IMF's transparency policy; warranted policy accommodation; IMF C-PIMA assessment; government entity; Capital spending; West Africa; Global; Sub-Saharan Africa
Cover IMF Staff Country Reports
Chile: Selected Issues
International Monetary Fund. Western Hemisphere Dept.
This Selected Issues paper focuses on Chile’s tax reform scenarios in international perspective. While the economic and social outcomes achieved by Chile have been impressive, important social challenges lie ahead. This paper benchmarks the estimated revenue gains of the tax reform proposal and discusses different fiscal consolidation scenarios. The paper also presents the stylized facts of the tax system in Chile compared with The Organization for Economic Cooperation and Development (OECD) countries. Following a very brief overview of the tax reform proposal, the paper also presents a benchmark analysis of the estimated revenue yields against similar domestic revenue mobilization episodes in OECD countries. The authorities are firmly committed to their medium-term fiscal consolidation plan. The tax reform is needed to finance social spending and meet the authorities’ fiscal consolidation plan. It is also important to consider that the increase in taxes will have implications for growth, with the effect depending on the final composition of the tax and spending reforms.
Keywords:
staff team of the International Monetary Fund; revenue scenario; green tax; abnormal returns; withdrawal request; capital market depth; AFP investment portfolio; climate strategy; NDC goal; IMF staff calculation; Pension spending; Climate policy; Carbon tax; Greenhouse gas emissions; Global; Caribbean; Western Hemisphere