Negative health effects of carbon prices can outweigh the climate benefits in developing countries

Key Messages

• With carbon pricing, households in most countries and regions have a tendency to change from fossil-based fuels to more traditional and polluting alternatives like firewood and charcoal.
• Fossil fuel price hikes lead to substantial increases in indoor pollution concentrations in most countries and regions.
• Despite compensation, local health costs of carbon pricing outweigh the global climate benefits in four out of six countries (Ghana, Honduras, India and Myanmar).
• In two countries (Cambodia and Kenya), carbon prices generate net climate and health benefits.