Carbon taxation is a key policy instrument for addressing climate change. Putting a price on emissions helps reduce greenhouse gas emissions while generating public revenues that can strengthen government budgets.
In 1990, Sweden was among the first countries in the world to adopt a carbon tax, and in 2013, Mexico was the first developing country to do so. The article compares the adoption of carbon taxes in these two pioneer countries. It highlights how the adoption of carbon taxes in both Mexico and Sweden depended on the interaction between different policy areas, as well as on windows of opportunity created by broader fiscal reforms.
The findings speak to broader debates in political science about how policy adoption becomes politically feasible.