What question did this study set out to answer?

This research aims to evaluate carbon pricing options for Cambodia, focusing on a suitable design and implementation framework.

Cambodia: Carbon Pricing Options

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Technical assistance explores carbon pricing for Cambodia, suggesting a carbon tax to enhance environmental outcomes.

This research aims to evaluate carbon pricing options for Cambodia, focusing on a suitable design and implementation framework.
Analyzed key country characteristics to choose an appropriate carbon pricing instrument.
Conducted economic analysis with the Climate Policy Assessment Tool (CPAT) to evaluate carbon tax impacts.
Assessed effects on emissions, fossil fuel use, energy prices, fiscal revenue, and household distributional impacts.
Recommended carbon tax as the preferred pricing instrument for Cambodia.
Predicted significant emission reductions and changes in fossil fuel use due to the tax.
Highlighted potential increases in fiscal revenue and variations in economic welfare across different households.

International Monetary Fund. Fiscal Affairs Dept. (2026) studied this question.

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