Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
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Daily Overview |
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Equity and distribution in the green transition Location: Auditorium A: Victor D. Norman Session Chair: Daniele Malerba, German Institute of Development and Sustainability (IDOS) | |
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What Drives The Distributional Impacts of Carbon Pricing? 1: Potsdam Institute for Climate Impact Research; 2: Technical University Berlin; 3: Leiden University; 4: Free University Berlin Carbon pricing is the central pillar of European climate policy, but frequently faces opposition because of its associated distributional effects. Carbon pricing can disproportionately impact lower-income groups, but how such distributional effects evolve over time remains unclear. We investigate the distributional impacts of carbon pricing between 2005 and 2020 across 15 EU countries and attribute changes to sectoral decarbonization and shifts in consumption patterns driven by income growth or residual shifts. In two thirds of the countries, carbon pricing has become more regressive. Building on Index Decomposition Analysis, we show that heterogeneous shifts in consumption patterns were the most important driver of changing distributional effects. Unequal income growth can explain such shifts in part. Future developments, including decarbonization, income growth and increasing inequality, thus may disproportionately hurt lower-income groups, highlighting the need for timely compensation measures. | |