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Carbon Policy Design and Distributional Impacts: What does the research tell us?

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  • Lynn Riggs

    (Motu Economic and Public Policy Research)

Abstract

There are two main veins of literature examining the distributional effects of carbon policy: the effects on households and the effects on production sectors (i.e., employment). These literatures have generally arisen from two common arguments against carbon policies – that these polices disproportionately affect lower income households and that the overall effect on jobs and businesses will be negative. However, existing research finds that well-designed carbon policies are consistent with growth, development, and poverty reduction, and both literatures provide guidance for policy design in this regard. This paper brings together the guidance from both literatures.

Suggested Citation

  • Lynn Riggs, 2022. "Carbon Policy Design and Distributional Impacts: What does the research tell us?," Working Papers 22_08, Motu Economic and Public Policy Research.
    • Handle: RePEc:mtu:wpaper:22_08
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    File URL: https://motu-www.motu.org.nz/wpapers/22_08.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Environmental Economics; Climate Change Mitigation; Distributional Impacts of Carbon Policies;
    All these keywords.

    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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