The distributional impacts of climate change and the transition to greener energy are profound, with varying levels of exposure and vulnerability across different regions, households, and workers. As climate policies drive the shift from high-polluting to green sectors, the economic consequences will not be evenly felt.
This report reviews existing literature on the distributional consequences of climate change and various mitigation pathways. It explores how climate policies, particularly price-based mechanisms like carbon taxation, impact different populations.
The report emphasizes the need to balance distributional outcomes with political acceptability, especially considering the regressive or progressive effects of these policies depending on the context.