We introduce a new microsimulation model built on household transport data to study the distributional effects of carbon-based fuel taxation of private road transport in Germany. Our data includes annual mileage at the car-level, the distinction between fuel types, as well as car-specific fuel...

While Tanzania's greenhouse gas emission levels still seem low by international comparison, the country is rapidly carbonizing, and most households still rely on kerosene, charcoal, and firewood for cooking and lighting. Carbon pricing can be an effective tool to discourage the creation of high...

In this paper, we assess the distributional impact of introducing a carbon tax in Poland. We apply a two-step simulation procedure. First, we evaluate the economy-wide effects with a dynamic general equilibrium model. Second, we use a microsimulation model based on household budget survey data...

We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by considering heterogeneous energy efficiencies. By deriving first- and second-best rules for policy instruments including carbon taxes, transfers and energy subsidies, we then...

The introduction of a price on carbon dioxide will have important effects on the U.S. economy, and especially important effects on the electricity sector, which currently accounts for about 40 percent of carbon dioxide emissions. This paper examines alternative approaches to the distribution of...

Carbon pricing is the efficient instrument to reduce emissions. Nevertheless, the geographical and sectoral coverage of substantial carbon pricing remains low, often due to concerns that it may increase economic inequality. Regulatory standards such as fuel economy standards are more popular....

While a carbon tax is widely acknowledged as an efficient policy to mitigate climate change, adoption has lagged. Part of the challenge resides in the distributional implications of a carbon tax and a belief that it tends to be regressive. Even when not regressive, poor households could be hurt...