Distributional impacts of carbon pricing policies under the Paris Agreement: Inter and intra-regional perspectives

Maksym Chepeliev (), Israel Osorio-Rodarte and Dominique van der Mensbrugghe ()
Authors registered in the RePEc Author Service: Israel Osorio Rodarte

Energy Economics, 2021, vol. 102, issue C

Abstract: In this paper, we analyze the poverty and distributional impacts of different carbon pricing mechanisms consistent with reaching the Paris Agreement targets. We link a global recursive dynamic computable general equilibrium model ENVISAGE with the GIDD microsimulation model and explore three levels of mitigation effort and five carbon pricing options (trade coalitions). Results suggest that while there is a higher incidence of poverty in all scenarios, mainly driven by lower economic growth, Nationally Determined Contribution (NDC) policies result in a progressive income distribution at the global level. Such progressivity is caused not only by lower relative prices of food versus non-food commodities, but also by a general decline in the skill wage premia.

Keywords: Paris Agreement; Carbon pricing; Distributional impacts; Global assessment; Microsimulation model; Computable general equilibrium model (search for similar items in EconPapers)
JEL-codes: C68 C83 D31 O15 Q54 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (17)

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Related works:
Working Paper: Distributional Impacts of Carbon Pricing Policies under Paris Agreement: Inter and Intra-Regional Perspectives (2021)
Working Paper: Distributional Impacts of Carbon Pricing Policies under Paris Agreement: Inter and Intra-Regional Perspectives (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:102:y:2021:i:c:s0140988321004084

DOI: 10.1016/j.eneco.2021.105530

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