Strategic implications of carbon pricing on global environmental sustainability and economic development: A conceptual framework

Authors

  • Peter Simpa Faculty of Science and Engineering, University of Hull, UK
  • Nko Okina Solomon Environmental Health and Safety, Marshall University Huntington West Virginia. USA
  • Olubunmi Adeolu Adenekan Independent Telecommunications Engineer and Data Analyst, UK.
  • Scholar Chinenye Obasi University of South Wales, UK

DOI:

https://doi.org/10.51594/ijae.v6i5.1134

Abstract

This study critically evaluates the strategic implications of carbon pricing mechanisms on global environmental sustainability and economic development. Employing a systematic literature review and content analysis, the research synthesizes recent findings from peer-reviewed articles, reports, and policy documents published between 2010 and 2024. The study's objectives include analyzing the effectiveness of carbon pricing in reducing greenhouse gas emissions, assessing its economic impacts, exploring environmental benefits, and understanding the role of international cooperation in enhancing the efficacy of carbon pricing policies. The methodology hinges on a structured search strategy, applying rigorous inclusion and exclusion criteria to ensure the relevance and quality of the literature reviewed. The analysis reveals that carbon pricing, encompassing both carbon taxes and cap-and-trade systems, serves as a pivotal tool for mitigating climate change while fostering economic growth and structural transformation. Key findings highlight the potential of carbon pricing to drive innovation in green technologies, the importance of addressing social equity concerns, and the critical role of international policy coordination in mitigating cross-border carbon leakage and competitiveness issues. The study concludes that carbon pricing mechanisms, when effectively designed and equitably implemented, can align environmental sustainability with economic development goals. Recommendations for policymakers emphasize the need for comprehensive strategies that integrate carbon pricing with broader economic and environmental policies, underscore the importance of international cooperation, and advocate for continued research to refine carbon pricing models and strategies. This research contributes to the ongoing discourse on carbon pricing, offering insights into its potential as a cornerstone of global climate governance and sustainable economic policy.

Keywords: Carbon Pricing Mechanisms, Environmental Sustainability, Economic Development, International Cooperation.

Published

2024-05-13

Issue

Section

Articles