This new study, commissioned by BMU, looks at key considerations for addressing distributional impacts of carbon pricing policies. It discusses the main distributional concerns for different societal groups – households, local communities and firms – and discusses options to alleviate them.
It finds that distributional concerns can often be addressed by changing the design of the pricing mechanism itself, or through complementary policies and measures. Moreover, it can be seen that socially just outcomes depend on the use of the carbon pricing revenues.
Date: March 2018