Distributional fairness of personal carbon trading

Atte Pitkänen, Tuuli von Wright, Janne Kaseva and Helena Kahiluoto

Ecological Economics, 2022, vol. 201, issue C

Abstract: Distributional fairness concerns are key barriers to the implementation of climate policies. Emission rights allocation is the decisive distributional feature of personal carbon trading (PCT) that is intended to incentivise individuals' low-carbon choices. The aim of the current study was to identify the predictors of the perceived distributional fairness of PCT. The perceived fairness of expected income redistribution through a PCT scheme in mobility was studied by a survey conducted among citizens of a medium-sized North European city, Lahti, Finland (n = 358). The progressive distributional effects of PCT with equal-per-capita allocation were perceived as fair by the majority, while the consequent burdens on rural households and families with children were strongly perceived as unfair. Political orientation and views on climate responsibility were the main fairness predictors for redistribution through PCT. The results imply that an allocation that acknowledges vulnerable groups with higher mobility needs would be considered fairer than an equal-per-capita allocation. An allocation that is sensitive to context-specific distributional fairness concerns appears to be a crucial feature of PCT for public acceptability.

Keywords: Personal Carbon Trading; Personal Carbon Allowances; Allocation; Carbon Pricing; Distributional Fairness; Public Acceptability (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolec:v:201:y:2022:i:c:s092180092200249x

DOI: 10.1016/j.ecolecon.2022.107587

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