Equity in carbon pricing: Impacts on household carbon burdens across different demographics

As carbon pricing mechanisms become more widespread globally, household carbon burdens have emerged as an important equity concern. Disparities between households can undermine policy fairness and effectiveness. This study examines the distribution of household carbon burdens not only across income groups but also in relation to various sociodemographic factors. Using an input-output model and Taiwan's Survey of Family Income and Expenditure, we analyze attributes such as financial status, household head characteristics, family size, appliance ownership, and workplace location. The findings show that while carbon pricing has a slightly greater effect on low-income groups, variations within groups are larger than between groups. Households headed by females, older individuals, smaller in size, or with higher education tend to have lower carbon burdens. In contrast, households with more vehicles, living in low-rise, large-area homes, or with workplaces in southern and eastern regions face higher burdens. These patterns highlight household gasoline use as a decisive factor: more cars and weaker access to public transportation—particularly outside northern municipalities—raise carbon burdens and underscore the need for regionally tailored, transport-sensitive policy design. A scenario-based sensitivity analysis reveals that imposing charges on industrial emissions and gasoline use can reduce the regressivity of carbon pricing. However, applying higher rates specifically on gasoline may increase disparities within income groups, suggesting the need for integrated policy packages to maintain fairness. This study provides a more comprehensive understanding of household carbon burdens and identifies vulnerable groups, offering evidence to support equitable implementation of carbon pricing policies.