Distributional Impacts of Climate Mitigation Policies - A Meta-Analysis

58 Pages Posted: 14 Dec 2018

See all articles by Nils Ohlendorf

Nils Ohlendorf

Mercator Research Institute on Global Commons and Climate Change (MCC)

Michael Jakob

Potsdam Institute for Climate Impact Research

Jan Christoph Minx

Independent

Carsten Schröder

Free University of Berlin (FUB) - Department of Business and Economics

Jan Christoph Steckel

Potsdam Institute for Climate Impact Research; Mercator Research Institute on Global Commons and Climate Change (MCC)

Date Written: December 2018

Abstract

Understanding the distributional impacts of market-based climate policies is crucial to design economically efficient climate change mitigation policies that are socially acceptable and avoid adverse impacts on the poor. Empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms in different countries arrive at ambiguous results. To systematically determine the sources of variation between these outcomes, we apply an ordered probit meta-analysis framework. Based on a comprehensive, systematic and transparent screening of the literature, our sample comprises 53 empirical studies containing 183 effects in 39 countries. Results indicate a significantly increased likelihood of progressive distributional outcomes for studies on lower income countries and transport sector policies. The same applies to study designs that consider indirect effects, behavioral adjustments of consumers or lifetime income proxies. Future research on different types of revenue recycling schemes and lower income countries would further contribute to the literature.

Keywords: Meta-analysis, Environmental policies, Distributional impacts, Inequality, Climate change mitigation, Households, Environmental taxes, Redistribution, Poverty

JEL Classification: H23,Q52,Q58

Suggested Citation

Ohlendorf, Nils and Jakob, Michael and Minx, Jan Christoph and Schröder, Carsten and Steckel, Jan and Steckel, Jan, Distributional Impacts of Climate Mitigation Policies - A Meta-Analysis (December 2018). DIW Berlin Discussion Paper No. 1776, Available at SSRN: https://ssrn.com/abstract=3299337 or http://dx.doi.org/10.2139/ssrn.3299337

Nils Ohlendorf (Contact Author)

Mercator Research Institute on Global Commons and Climate Change (MCC) ( email )

Torgauer Straße 12-15
Berlin, 10829
Germany

Michael Jakob

Potsdam Institute for Climate Impact Research ( email )

Telegraphenberg
Potsdam, Brandenburg 14412
Germany

Jan Christoph Minx

Independent

Carsten Schröder

Free University of Berlin (FUB) - Department of Business and Economics ( email )

Boltzmannstrasse 20
D-14195 Berlin, 14195
Germany
+49 030 838-52259 (Phone)
+49 030 838-52560 (Fax)

Jan Steckel

Mercator Research Institute on Global Commons and Climate Change (MCC) ( email )

Torgauer Straße 12-15
Berlin, 10829
Germany

HOME PAGE: http://https://www.mcc-berlin.net/en/about/team/steckel-jan.html

Potsdam Institute for Climate Impact Research ( email )

Telegraphenberg
Potsdam, Brandenburg 14412
Germany

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
140
Abstract Views
949
rank
281,915
PlumX Metrics