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

Working paper by Julius Andersson, Giles Atkinson on 9 Sep 2020

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.

Policy interactions and the transition to clean technology

Working paper by Ghassane Benmir, Josselin Roman on 22 Apr 2020

This paper assesses the effectiveness and interactions of different policies aimed at reducing carbon dioxide emissions, using a macro-financial framework. The research aims to provide central banks and similar institutions with the tools to contribute to climate change mitigation and demonstrates the importance of including these institutions in the push to reduce global emission levels. read more »

Distributional impacts of a carbon tax in the UK

Policy publication by Josh Burke, Sam Fankhauser, Alex Kazaglis, Louise Kessler, Naina Khandelwal, Peter O’Boyle on 9 Mar 2020

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.

The impact of energy prices on socioeconomic and environmental performance: Evidence from French manufacturing establishments, 1997–2015

Working paper by Giovanni Marin, Francesco Vona on 17 Dec 2019

In evaluating the responses of French manufacturing firms to large increases in energy prices, which the authors use as a proxy for stringent environmental policy, they find that costs in terms of job losses and competitiveness are smaller by an order of magnitude than the benefits in terms of reducing carbon dioxide emissions. read more »

Global lessons for the UK in carbon taxes

Policy publication by Josh Burke, Rebecca Byrnes, Sam Fankhauser on 2 Aug 2019

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 »