The distributional effects of a carbon tax: The role of income inequality

The fact that a carbon tax is an environmentally and economically efficient instrument for reducing emissions is often highlighted, but the equity story is also of importance. This paper addresses the question of the distributional burden of a carbon tax across different income groups and the role played by income inequality.

Emissions trading with transaction costs

The authors of this paper develop a theoretical model of emissions trading in the presence of transaction costs, calibrating the model to annual transactions and compliance data in the European Union emissions trading scheme over its second phase.

Distributional impacts of a carbon tax in the UK

This study explores the distributional impacts of a net-zero-consistent carbon price across different household types and income deciles in the UK; and examines which combination of interventions may reduce carbon consumption and still be progressive.

Global lessons for the UK in carbon taxes

This policy brief analyses global trends in carbon taxation and differences in tax design around the world to draw out lessons for the design of a possible new carbon tax for the UK, as the country plans how to meet its ambitious new net-zero emissions target and how it prices carbon after Brexit. read more »