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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Environmental Policies and Equity Location: D-105 Session Chair: Laura Schürer, University of Oldenburg | |
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Who decarbonizes? Effects of carbon pricing on carbon inequality University of Oldenburg, Germany In many countries, consumption-based emissions are increasingly concentrated at the top of the distribution, and there are growing calls in public debate for climate policy to target emission-intensive luxury consumption more strongly. Yet while financial distributional effects of carbon pricing are well studied, its impact on the distribution of emissions across households remains less well understood. This paper first characterizes the demand-side conditions under which uniform carbon pricing increases or decreases consumption-based carbon inequality within countries in a simple partial-equilibrium setting with heterogeneous households. Applying the main result to Germany using consumption data suggests that uniform carbon pricing reduces carbon inequality. It then compares differentiated carbon pricing, where luxury goods are priced at a higher rate than necessities, with the standard benchmark of uniform carbon pricing with lump-sum transfers. While the latter is attractive in terms of efficiency and redistribution, interestingly, it does not necessarily outperform differentiated pricing, both regarding financial and emissions-based distributional effects. | |