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Carbon Policy Design and Distributional Impacts: What does the research tell us?

Lynn Riggs

No 22_08, Working Papers from Motu Economic and Public Policy Research

Abstract: There are two main veins of literature examining the distributional effects of carbon policy: the effects on households and the effects on production sectors (i.e., employment). These literatures have generally arisen from two common arguments against carbon policies – that these polices disproportionately affect lower income households and that the overall effect on jobs and businesses will be negative. However, existing research finds that well-designed carbon policies are consistent with growth, development, and poverty reduction, and both literatures provide guidance for policy design in this regard. This paper brings together the guidance from both literatures.

Keywords: Environmental Economics; Climate Change Mitigation; Distributional Impacts of Carbon Policies (search for similar items in EconPapers)
JEL-codes: J01 Q52 R11 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2022-08
New Economics Papers: this item is included in nep-ene and nep-env
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