Ukraine Carbon Pricing
Vivid Economics was commissioned by the Ukrainian Ministry of Ecology and Natural Resources, in conjunction with the World Bank’s Partnership for Market Readiness, to provide quantitative modelling of the economic impact of carbon pricing instruments in Ukraine.
The study investigates the application of a carbon tax to complement the scheduled ETS. The approach combines the use of the Vivid Economy-Wide (ViEW) model – a recursive dynamic CGE model – and supplementary analysis to study the effects of carbon pricing on sectoral emissions, production, distribution of cost burden and economy-wide effects. The quantitative and qualitative results will culminate into policy recommendations for the future of carbon pricing in Ukraine. Vivid Economics will also hold a high-level workshop for key Ministry staff to present the results and discuss policy options.