Distributional impacts of carbon pricing policies under the Paris Agreement: Inter and intra-regional perspectives

A-Tier
Journal: Energy Economics
Year: 2021
Volume: 102
Issue: C

Authors (3)

Chepeliev, Maksym (not in RePEc) Osorio-Rodarte, Israel (not in RePEc) van der Mensbrugghe, Dominique (Purdue University)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In this paper, we analyze the poverty and distributional impacts of different carbon pricing mechanisms consistent with reaching the Paris Agreement targets. We link a global recursive dynamic computable general equilibrium model ENVISAGE with the GIDD microsimulation model and explore three levels of mitigation effort and five carbon pricing options (trade coalitions). Results suggest that while there is a higher incidence of poverty in all scenarios, mainly driven by lower economic growth, Nationally Determined Contribution (NDC) policies result in a progressive income distribution at the global level. Such progressivity is caused not only by lower relative prices of food versus non-food commodities, but also by a general decline in the skill wage premia.

Technical Details

RePEc Handle
repec:eee:eneeco:v:102:y:2021:i:c:s0140988321004084
Journal Field
Energy
Author Count
3
Added to Database
2026-01-25