Trinidad and Tobago ranked as the highest per capita emitter of carbon dioxide in Latin America and the Caribbean in 2023, with estimated emissions of approximately 22.8 metric tonnes of CO₂‑equivalent per person. In support of the country’s Nationally Determined Contributions (NDCs) and broader climate mitigation efforts, this paper assesses the macroeconomic and environmental implications of introducing a domestic carbon tax. Using the IMF–World Bank Carbon Policy Assessment Tool (CPAT), a set of calibrated policy scenarios are developed to evaluate how carbon pricing (combined with complementary fiscal measures) affects emissions, economic activity, and external balances.
Working Papers Series
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