In a groundbreaking study published in *Energy Nexus* (translated from Spanish as “Energy Nexus”), researchers have uncovered substantial environmental and economic benefits of implementing carbon taxation within a low-carbon pathway strategy, specifically in Chile. The research, led by Shahriyar Nasirov of the Facultad de Ingeniería y Ciencias at Universidad Adolfo Ibáñez in Santiago, Chile, and the ECEMIN Research Group at Universidad de Nebrija in Madrid, Spain, sheds light on the dual advantages of tackling both climate change and air pollution through integrated energy policies.
The study, titled “Environmental co-benefits of carbon taxation on air pollution under a low-carbon pathway in Chile,” utilizes a dynamic computable general equilibrium model (ECOGEM-Chile) to assess long-term emission trends and quantify the potential co-benefits of reducing major air pollutants. The findings are particularly relevant for the energy sector, as they highlight the significant role that key industries—such as energy, manufacturing, construction, and transport—play in achieving sustained improvements in air quality through 2050.
“Adopting a low-carbon pathway leads to significant reductions in local air pollutants relative to the base year,” Nasirov explains. “Furthermore, the introduction of a carbon tax produces additional substantial reductions, reinforcing the positive environmental outcomes and the important economic value of the resulting reduction in health effects.”
The research underscores the strong synergy between climate change drivers and major air contaminants, making integrated strategies increasingly attractive to policymakers. By addressing both challenges simultaneously, these strategies not only advance long-term climate change mitigation goals but also improve air quality, thereby reducing adverse health effects. This provides important incentives for their adoption.
For the energy sector, the implications are profound. The study suggests that a low-carbon pathway, coupled with carbon taxation, can drive significant reductions in CO₂ emissions and other air pollutants. This creates a more favorable regulatory environment for energy companies, encouraging investment in cleaner technologies and practices.
“Key sectors—such as energy, manufacturing, construction, and transport—are pivotal in achieving sustained improvements in air quality through 2050,” Nasirov notes. This highlights the commercial opportunities for businesses that can adapt to and lead these changes, positioning themselves as leaders in sustainable practices.
The study’s findings also emphasize the economic value of reducing health effects associated with air pollution. By improving air quality, businesses can contribute to a healthier population, which in turn can lead to a more productive workforce and reduced healthcare costs. This creates a virtuous cycle of environmental and economic benefits.
As the world grapples with the dual challenges of climate change and air pollution, this research offers a compelling case for integrated energy policies. By adopting a low-carbon pathway and implementing carbon taxation, countries like Chile can achieve significant environmental and economic benefits. For the energy sector, this represents both a challenge and an opportunity—to innovate, adapt, and lead the way towards a more sustainable future.
The study, published in *Energy Nexus*, provides a robust framework for understanding the co-benefits of carbon taxation and a low-carbon pathway. It serves as a valuable resource for policymakers, businesses, and researchers seeking to navigate the complex landscape of energy policy and environmental sustainability. As the world continues to evolve in response to these pressing issues, the insights from this research will undoubtedly shape future developments in the field.