Carbon pricing in Vietnam: Options for adoption

Date

2021-12

Authors

Do, Thang Nam
Burke, Paul

Journal Title

Journal ISSN

Volume Title

Publisher

Elsevier

Abstract

This paper investigates options for carbon price adoption in Vietnam, with a focus on model designs capable of meeting the country's updated Nationally Determined Contribution (NDC). We employ an ex-ante policy evaluation across environmental, economic, social, and political dimensions, drawing on interviews with key stakeholders. A multi-criteria analysis is also pursued to provide an overall comparison across policy options. The findings indicate that a relatively low but increasing carbon price could play an important role in steering Vietnam toward meeting its emission reduction targets. A carbon tax has the advantage of simplicity, while an emissions trading scheme would likely be politically easier to introduce. If an emissions trading scheme is established, permit auctioning would be preferable to free allocations on account of revenue benefits and relative simplicity. A key risk is that an overgenerous cap would be set, which would undermine environmental impact.

Description

Keywords

carbon pricing, climate policy, emissions trading scheme, greenhouse gas emission, green growth, Vietnam

Citation

Do, Thang Nam and Burke, Paul J. 2021. Carbon pricing in Vietnam: Options for adoption. Energy and Climate Change 2, 100058.

Source

Energy and Climate Change

Type

Journal article

Book Title

Entity type

Access Statement

Open Access

License Rights

Creative Commons Attribution-NonCommercial-NoDerivs License

DOI

10.1016/j.egycc.2021.100058

Restricted until

2023-12-31