IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v191y2024ics0301421524001964.html
   My bibliography  Save this article

Climate change policies and income inequality

Author

Listed:
  • Bettarelli, Luca
  • Furceri, Davide
  • Pizzuto, Pietro
  • Shakoor, Nadia

Abstract

This paper examines the dynamic impact of Climate Change Policies (CCPs) on income inequality, for a sample of 39 developed and developing countries, during the period 1990–2020. The results show that CCPs are associated with a significant and persistent increase in income inequality. The effect is robust across various measures of inequality and sensitivity tests, including an instrumental variable strategy. The effect of CCPs only materializes in the case of market-based CCPs, is stronger in countries characterized by a higher share of low-educated workers and initial level of inequality, while is mitigated in those with comprehensive redistribution policies, and during periods of fiscal expansions and stronger economic growth. These findings have important policy implications, as they emphasize the importance of the timing and design of CCPs, as well as the role of complementary policies.

Suggested Citation

  • Bettarelli, Luca & Furceri, Davide & Pizzuto, Pietro & Shakoor, Nadia, 2024. "Climate change policies and income inequality," Energy Policy, Elsevier, vol. 191(C).
    • Handle: RePEc:eee:enepol:v:191:y:2024:i:c:s0301421524001964
    DOI: 10.1016/j.enpol.2024.114176
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421524001964
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2024.114176?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Climate change policy; Income inequality; Local projections; SDGs;
    All these keywords.

    JEL classification:

    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H00 - Public Economics - - General - - - General
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:191:y:2024:i:c:s0301421524001964. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.