Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/190793 
Year of Publication: 
2018
Series/Report no.: 
DIW Discussion Papers No. 1776
Publisher: 
Deutsches Institut für Wirtschaftsforschung (DIW), Berlin
Abstract: 
Understanding the distributional impacts of market-based climate policies is crucial to design economically efficient climate change mitigation policies that are socially acceptable and avoid adverse impacts on the poor. Empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms in different countries arrive at ambiguous results. To systematically determine the sources of variation between these outcomes, we apply an ordered probit meta-analysis framework. Based on a comprehensive, systematic and transparent screening of the literature, our sample comprises 53 empirical studies containing 183 effects in 39 countries. Results indicate a significantly increased likelihood of progressive distributional outcomes for studies on lower income countries and transport sector policies. The same applies to study designs that consider indirect effects, behavioral adjustments of consumers or lifetime income proxies. Future research on different types of revenue recycling schemes and lower income countries would further contribute to the literature.
Subjects: 
Meta-analysis
Environmental policies
Distributional impacts
Inequality
Climate change mitigation
Households
Environmental taxes
Redistribution
Poverty
JEL: 
H23
Q52
Q58
Document Type: 
Working Paper

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