nep-cis New Economics Papers
on Confederation of Independent States
Issue of 2012‒07‒14
two papers chosen by
Alexander Harin
Modern University for the Humanities

  1. Subnational Taxation in Large Emerging Countries: BRIC Plus One By Richard M. Bird
  2. Economic implications of moving toward global convergence on emission intensities By Timilsina, Govinda R.

  1. By: Richard M. Bird (Institute on Municipal Finance and Governance, University of Toronto)
    Abstract: This paper reviews the evolution and current state of subnational taxation in five large emerging countries: Brazil, Russia, India, China, and Nigeria—BRIC plus one. As these case studies show, intergovernmental fiscal relations in any country are inevitably both path-dependent and context-sensitive. In India and Brazil, for example, subnational governments already have a significant degree of fiscal autonomy in being able to set some key tax rates. In both countries, however, substantial attention still must be paid to improving the general consumption taxes that are the main source of regional government revenues as well as the property taxes on which local governments mainly depend. Although Nigeria, like India and Brazil, is a federation, its fiscal system depends so heavily on oil revenues that almost all political attention has been focused on securing a bigger share of these revenues. Both China and Russia have made important changes in the direction of centralizing rather than decentralizing effective control over subnational taxes. In both countries, the key issue is the extent to which fiscal decentralization is to be accompanied by significant political decentralization. At present, in neither China nor Russia is it clear that the central authorities are willing to permit subnational governments much autonomy in this respect.
    Keywords: state and local taxation, intergovernmental fiscal relations, Brazil, Russia, India, China, Nigeria
    JEL: H71 H77 P35 P43
    Date: 2012–03
  2. By: Timilsina, Govinda R.
    Abstract: One key contentious issue in climate change negotiations is the huge difference in carbon dioxide (CO2) emissions per capita between more advanced industrialized countries and other nations. This paper analyzes the costs of reducing this gap. Simulations using a global computable general equilibrium model show that the average the carbon dioxide intensity of advanced industrialized countries would remain almost twice as high as the average for other countries in 2030, even if the former group adopted a heavy uniform carbon tax of $250/tCO2 that reduced their emissions by 57 percent from the baseline. Global emissions would fall only 18 percent, due to an increase in emissions in the other countries. This reduction may not be adequate to move toward 2050 emission levels that avoid dangerous climate change. The tax would reduce Annex I countries'gross domestic product by 2.4 percent, and global trade volume by 2 percent. The economic costs of the tax vary significantly across countries, with heavier burdens on fossil fuel intensive economies such as Russia, Australia, the United Kingdom and the United States.
    Keywords: Climate Change Mitigation and Green House Gases,Environment and Energy Efficiency,Climate Change Economics,Energy and Environment,Carbon Policy and Trading
    Date: 2012–07–01

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