[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-113298-en":3,"doc-seo-113298-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},113298,8796095461610,"Oliver","https://ap-avatar.wpscdn.com/davatar_276721f389ce27ea32af1340a28f341c",8,"Research & Report","Quasi-Experimental Evidence on Carbon Pricing - A Systematic Review","A systematic review examines quasi-experimental studies evaluating whether carbon pricing—through emissions taxes or trading schemes—causally reduces carbon and greenhouse-gas emissions while assessing economic consequences. The literature faces limits in ex-ante prediction, inconsistent empirical findings, and difficulties establishing causal relations. Quasi-experimental designs address these issues by exploiting policy variation across time, space, or entities. Evidence indicates a causal emissions-reduction effect but ambiguous impacts on economic outcomes, with notable gaps and methodological and data limitations requiring cautious interpretation.","Pub lic Disclosure Authorized Pub lic Disclosure Authorized  \n\n| Quasi-Experimental Evidence on Carbon\u003Cbr>Pricing |\n| --- |\n| Kasper Vrolijk  and Misato Sato |\n\nA growing literature suggests that carbon emissions are most efficiently reduced by car bon pricing. The evidence base on the effectiveness of market-based mechanisms, however, faces three key limitations: studies often (a) predict, rather than evaluate effects, (b) show large difference in findings, and (c) cannot always infer causal relations. Quasi-experimental studies can address these challenges by using variation in policies over time, space, or entities. This paper systematically reviews this new literature, outlines the benefits and caveats of quasi-experimental methodologies, and verifies the reliability and value of quasiexperimental estimates. The overall evidence base documents a causal effect between carbon pricing and emission reductions, with ambiguous effects on economic outcomes, and there are important gaps and inconsistencies. This review underscores that estimates should be interpreted with care because of: (a) inappropriate choice of method,(b) incorrect implemen tation of empirical analysis (e.g., violate identifying assumptions), and (c) data limitations. More cross-learning across studies and use of novel empirical strategies is needed to improve the empirical evidence base going forward.  \nJEL Codes: H23, Q58, C21  \nKeywords: proposition: carbon pricing, empirical evidence, policy impact, quasiexperimental designs.  \nIntroduction  \nA growing economic literature suggests that the reduction of greenhouse emissions, and carbon dioxide emissions in particular, is most efficiently achieved through market-based mechanisms, either by putting a tax on emissions or introducing an emissions trading scheme. Given that climate change is increasingly accelerating and materializing in large-scale environmental and economic damage, it is important to understand the effectiveness of such marked-based policies. Moreover, because  \nThe World Bank Research Observer  \n© The Author(s) 2023 . Published by Oxford University Press on behalf of the International Bank for Reconstruction and Development / THE WORLD BANK. This is an Open Access article distributed under the terms of the Creative Commons Attribution-NonCommercial License ([https://creativecommons.org/licenses/by-nc/4.0/](https://creativecommons.org/licenses/by-nc/4.0/)), which permits non-commercial re-use, distribution, and reproduction in any medium, provided the original work is properly cited. For commercial re-use, [please contact journals.permissions@oup.com](please contact journals.permissions@oup.com)  \n[https://doi.org/10.1093/wbro/lkad001](https://doi.org/10.1093/wbro/lkad001) 38:213–248  \nDownloaded from [https://academic.oup.com/wbro/article/38/2/213/7093113 by World Bank user on 04 September 2023](https://academic.oup.com/wbro/article/38/2/213/7093113 by World Bank user on 04 September 2023)  \ncarbon taxation and carbon trade mechanisms likely create substantial shocks throughout the economy, influencing economic behavior and outcomes, a comprehensive evidence base on the economic effects of such mechanisms is key to improving the effectiveness of policies and relevant institutions. Particularly for climate change mitigation in least developed and emerging countries, robust evidence is essential to minimize negative economic effects.  \nDespite the urgency to advance climate action, there are three main challenges that limit our understanding of the effects of carbon taxation and cap-and-trade mechanisms (henceforth carbon pricing) on emissions and economic outcomes. First, a large part of the literature uses ex-ante approaches to predict, rather than evaluate ex-post, the effect of carbon pricing policies. This is inevitable given that carbon pricing is relatively new. The critique against such integrated assessment models (IAM) is well established (Pindyck 2013 , 2017) . Second, the quality o","cbCaicOHwnZ9sipd","https://ap.wps.com/l/cbCaicOHwnZ9sipd","pdf",371088,1,36,"English","en",105,"# Introduction\n## Market-based carbon pricing and the need for robust evidence\n## Key challenges in existing literature\n## Role of quasi-experimental designs\n## Goals of the paper","[{\"question\":\"Why does the paper focus on quasi-experimental evidence for carbon pricing?\",\"answer\":\"Existing research often relies on ex-ante prediction, yields inconsistent results, and cannot always identify causal relationships. Quasi-experimental designs use variation in policies over time, space, or entities to better estimate causal effects.\"},{\"question\":\"What does the review find about carbon pricing and emissions?\",\"answer\":\"The review reports an overall causal effect between carbon pricing and emission reductions. It also notes important gaps and inconsistencies across studies.\"},{\"question\":\"How does the paper address economic outcomes and methodological limitations?\",\"answer\":\"Economic effects on outcomes are described as ambiguous, and the paper emphasizes that estimates require careful interpretation due to inappropriate methods, incorrect implementation that violates identifying assumptions, and data limitations.\"}]",1784502364,91,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"quasi-experimental-evidence-on-carbon-pricing-a-systematic-review","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/quasi-experimental-evidence-on-carbon-pricing-a-systematic-review/113298/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-20","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"Why does the paper focus on quasi-experimental evidence for carbon pricing?","Question",{"text":75,"@type":76},"Existing research often relies on ex-ante prediction, yields inconsistent results, and cannot always identify causal relationships. Quasi-experimental designs use variation in policies over time, space, or entities to better estimate causal effects.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"What does the review find about carbon pricing and emissions?",{"text":80,"@type":76},"The review reports an overall causal effect between carbon pricing and emission reductions. It also notes important gaps and inconsistencies across studies.",{"name":82,"@type":73,"acceptedAnswer":83},"How does the paper address economic outcomes and methodological limitations?",{"text":84,"@type":76},"Economic effects on outcomes are described as ambiguous, and the paper emphasizes that estimates require careful interpretation due to inappropriate methods, incorrect implementation that violates identifying assumptions, and data limitations.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,123,128,131,135],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":94,"show_sort_weight":95,"slug":96},"Story & Novel",90,"story-novel",{"id":46,"doc_module":4,"doc_module_name":45,"category_name":98,"show_sort_weight":99,"slug":100},"Literature",80,"literature",{"id":52,"doc_module":4,"doc_module_name":45,"category_name":102,"show_sort_weight":103,"slug":104},"Exam",70,"exam",{"id":106,"doc_module":4,"doc_module_name":45,"category_name":107,"show_sort_weight":108,"slug":109},5,"Comic",60,"comic",{"id":111,"doc_module":4,"doc_module_name":45,"category_name":112,"show_sort_weight":113,"slug":114},6,"Technology",50,"technology",{"id":116,"doc_module":4,"doc_module_name":45,"category_name":117,"show_sort_weight":118,"slug":119},7,"Healthcare",40,"healthcare",{"id":11,"doc_module":4,"doc_module_name":45,"category_name":12,"show_sort_weight":121,"slug":122},30,"research-report",{"id":124,"doc_module":4,"doc_module_name":45,"category_name":125,"show_sort_weight":126,"slug":127},9,"Religion & Spirituality",20,"religion-spirituality",{"id":126,"doc_module":4,"doc_module_name":45,"category_name":129,"show_sort_weight":126,"slug":130},"World Cup","world-cup",{"id":132,"doc_module":4,"doc_module_name":45,"category_name":133,"show_sort_weight":132,"slug":134},10,"Lifestyle","lifestyle",{"id":136,"doc_module":4,"doc_module_name":45,"category_name":137,"show_sort_weight":106,"slug":138},19,"General","general"]