Carbon taxation on a moving fuel base
Proposed under the DAAD Hi‑Nepal exchange between the Center for Energy Studies, IOE and the Institute for Technology and Resources Management in the Tropics and Subtropics, TH Köln.
Standard carbon-tax analysis assumes the taxed basket stays roughly where it is. Nepal’s does not. The same instrument has to be evaluated against household fuel switching, transport electrification, and an electricity system that is already close to zero-carbon — which means the revenue base erodes exactly as the policy succeeds.
The work models that erosion explicitly, and asks what a rate schedule has to look like if it is meant to stay fiscally coherent for fifteen years rather than three.