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Exited to publish a meta-analysis on distributional impacts of carbon pricing in Environmental and Resource Economics. Joint work with @jan_c_steckel, @JanMinxMCC, @Jakob_MCC from @MCC_Berlin and Carsten Schröder from @DIW_Berlin. #inequality
Thread:
https://doi.org/10.1007/s10640-020-00521-1
Thread:
https://doi.org/10.1007/s10640-020-00521-1
1/ We analyze why empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms arrive at ambiguous results. We consider country-specific factors, the type of policy under study as well as the modeling approach.
2/ We find that progressive distributional outcomes are more likely in studies on lower income countries and for transport sector policies. The same applies to study designs that consider indirect effects, demand-side adjustments of consumers or lifetime income proxies.
3/ We apply an ordered probit meta-analysis framework to 53 empirical studies containing 183 effects in 39 countries. The studies are identified based on a comprehensive, systematic and transparent screening of the literature.
4/ Though we neglect revenue recycling schemes, it should be noted that revenue recycling may offset regressive distributional impacts or support particularly vulnerable households in low-income countries, which face a higher risk of poverty, even with progressive policies.
5/ Finally, even without revenue recycling, more than one third of effects in sample are progressive or proportional. This demonstrates that environmental taxes not necessarily impose a burden on the poor, but that distributional impacts depend on a variety factors.
