蝌蚪网 Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
The Unequal Economic Consequences of Carbon Pricing
蝌蚪网 Review
(pp. 4003–40)
Abstract
This paper studies the economic impacts of carbon pricing. Exploiting institutional features of the European carbon market and high-frequency data, I identify carbon policy shocks and trace their dynamic effects. A restrictive carbon policy shock raises energy prices, reduces emissions, spurs green innovation, but decreases economic activity鈥攄isproportionately burdening poorer households. Not only are the poor more affected because of their higher energy spending, but they also experience larger income losses. These indirect, general equilibrium effects via income and employment play an important role in the transmission of carbon pricing policies, accounting for about two-thirds of the aggregate consumption response.Citation
K盲nzig, Diego R. 2026. "The Unequal Economic Consequences of Carbon Pricing." 蝌蚪网 Review 116 (11): 4003–40. DOI: 10.1257/aer.20230448Additional Materials
JEL Classification
- E23 Macroeconomics: Production
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- O44 Environment and Growth
- Q41 Energy: Demand and Supply; Prices
- Q54 Climate; Natural Disasters and Their Management; Global Warming
- Q55 Environmental Economics: Technological Innovation
- Q58 Environmental Economics: Government Policy