Can a CO 2 Tax Be Socially Just? Analysis of the Social Distribution Effects of the German CO 2 Taxation

Maike Venjakob, Oliver Wagner and Birte Schnurr ()
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Maike Venjakob: Energy Policy Research Unit, Wuppertal Institute for Climate, Environment and Energy, 42103 Wuppertal, Germany
Oliver Wagner: Energy Policy Research Unit, Wuppertal Institute for Climate, Environment and Energy, 42103 Wuppertal, Germany
Birte Schnurr: Energy Policy Research Unit, Wuppertal Institute for Climate, Environment and Energy, 42103 Wuppertal, Germany

Energies, 2023, vol. 16, issue 17, 1-14

Abstract: Rising energy costs have led to increased discussion about the social impact of the energy transition in Germany in recent years. In 2021, a gradually increasing CO 2 tax was introduced. This paper analyzes the question of whether a CO 2 tax can be socially just. Using data analysis and desk research, correlations between income and energy consumption in Germany are shown. In a short analysis, it is investigated which additional burdens different types of private households have to expect in the coming years due to the introduction of CO 2 pricing on energy. In particular, the introduction of a per capita flat rate fed by CO 2 tax revenues could be a suitable way to reduce the burden on low-income households.

Keywords: energy policy; energy transition; carbon pricing; carbon taxation; social sustainability; distributional effects; climate dividend; climate bonus (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
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