42459
2018
2019
eng
12
103
postprint
1
2019-02-22
2019-02-22
--
Poverty and distributional effects of carbon pricing in low- and middle- income countries
Even though concerns about adverse distributional implications for the poor are one of the most important political challenges for carbon pricing, the existing literature reveals ambiguous results. For this reason, we assess the expected incidence of moderate carbon price increases for different income groups in 87 mostly low- and middle-income countries. Building on a consistent dataset and method, we find that for countries with per capita incomes of below USD 15,000 per year (at PPP-adjusted 2011 USD) carbon pricing has, on average, progressive distributional effects. We also develop a novel decomposition technique to show that distributional outcomes are primarily determined by differences among income groups in consumption patterns of energy, rather than of food, goods or services. We argue that an inverse U-shape relationship between energy expenditure shares and income explains why carbon pricing tends to be regressive in countries with relatively higher income. Since these countries are likely to have more financial resources and institutional capacities to deal with distributional issues, our findings suggest that mitigating climate change, raising domestic revenue and reducing economic inequality are not mutually exclusive, even in low- and middle-income countries.
Postprints der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe
a global comparative analysis
10.25932/publishup-42459
urn:nbn:de:kobv:517-opus4-424592
1867-5808
online registration
World Development 115 (2019), pp. 246–257 DOI 10.1016/j.worlddev.2018.11.015
<a href="http://publishup.uni-potsdam.de/50146">Bibliographieeintrag der Originalveröffentlichung/Quelle</a>
CC-BY-NC-ND - Namensnennung, nicht kommerziell, keine Bearbeitungen 4.0 International
Ira Irina Dorband
Michael Jakob
Matthias Kalkuhl
Jan Christoph Steckel
Zweitveröffentlichungen der Universität Potsdam : Wirtschafts- und Sozialwissenschaftliche Reihe
103
eng
uncontrolled
carbon pricing
eng
uncontrolled
distributional effect
eng
uncontrolled
decomposition analysis
eng
uncontrolled
global comparison
eng
uncontrolled
household data
eng
uncontrolled
low- and middle-income countries
Sozialwissenschaften
Wirtschaft
open_access
Wirtschafts- und Sozialwissenschaftliche Fakultät
Referiert
Open Access
Universität Potsdam
https://publishup.uni-potsdam.de/files/42459/pwsr103.pdf
50146
2019
2019
eng
246
257
12
115
article
Elsevier
Oxford
1
--
--
--
Poverty and distributional effects of carbon pricing in low- and middle-income countries - A global comparative analysis
Even though concerns about adverse distributional implications for the poor are one of the most important political challenges for carbon pricing, the existing literature reveals ambiguous results. For this reason, we assess the expected incidence of moderate carbon price increases for different income groups in 87 mostly low- and middle-income countries. Building on a consistent dataset and method, we find that for countries with per capita incomes of below USD 15,000 per year (at PPP-adjusted 2011 USD) carbon pricing has, on average, progressive distributional effects. We also develop a novel decomposition technique to show that distributional outcomes are primarily determined by differences among income groups in consumption patterns of energy, rather than of food, goods or services. We argue that an inverse U-shape relationship between energy expenditure shares and income explains why carbon pricing tends to be regressive in countries with relatively higher income. Since these countries are likely to have more financial resources and institutional capacities to deal with distributional issues, our findings suggest that mitigating climate change, raising domestic revenue and reducing economic inequality are not mutually exclusive, even in low- and middle-income countries. (C) 2018 The Authors. Published by Elsevier Ltd.
World development
10.1016/j.worlddev.2018.11.015
0305-750X
wos:2019
WOS:000456352700019
Dorband, II (reprint author), Mercator Res Inst Global Commons & Climate Change, Torgauer Str 12-15, D-10829 Berlin, Germany., Dorband@mcc-berlin.net; Jakob@mcc-berlin.net; Kalkuhl@mcc-berlin.net; Steckel@mcc-berlin.net
German Federal Ministry of Education and Research (BMBF)Federal Ministry of Education & Research (BMBF) [01LS1610B]; Heinrich Boll Foundation
2021-03-31T10:58:58+00:00
sword
importub
filename=package.tar
fde1a8c4e66674a3a5c3c6efd40c76a5
<a href="https://doi.org/10.25932/publishup-42459">Zweitveröffentlichung in der Schriftenreihe Postprints der Universität Potsdam :[ Wirtschafts- und Sozialwissenschaftliche Reihe ; 103</a>
CC-BY-NC-ND - Namensnennung, nicht kommerziell, keine Bearbeitungen 4.0 International
Ira Irina Dorband
Michael Jakob
Matthias Kalkuhl
Jan Christoph Steckel
eng
uncontrolled
Carbon pricing
eng
uncontrolled
Distributional effect
eng
uncontrolled
Decomposition analysis
eng
uncontrolled
Global comparison
eng
uncontrolled
Household data
eng
uncontrolled
Low- and middle-income countries
Sozialwissenschaften
Sozialwissenschaften
Referiert
Import
Hybrid Open-Access