metric for optimal carbon prices. Previous literature shows that inequality significantly influences the level of the social … cost of carbon, but mostly neglects a major source of inequality - heterogeneity in income below the national level. We … inequality between and within countries. In particular, we demonstrate that climate and distributional policy cannot be separated …

metric for optimal carbon prices. Previous literature shows that inequality significantly influences the level of the social … cost of carbon, but mostly neglects a major source of inequality - heterogeneity in income below the national level. We … inequality between and within countries. In particular, we demonstrate that climate and distributional policy cannot be separated …

damage function. This result offers a simple rule to account for inequality in the design of climate policy. We show that … wealthier regions should bear more responsibility for carbon capture to cleanse the atmosphere, and that inequality per se does … capture serves as a redistribution tool when direct lump-sum transfers across regions are unfeasible. …

-efficient households if and only if social inequality aversion is sufficiently high. We further find that redistribution of carbon tax …We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by … problems, but increase mitigation costs by around 15 percent compared to the first-best for unity inequality aversion. Adding …