Carbon pricing is the efficient instrument to reduce emissions. Nevertheless, the geographical and sectoral coverage of substantial carbon pricing remains low, often due to concerns that it may increase economic inequality. Regulatory standards such as fuel economy standards are more popular....

In this paper, we assess the distributional impact of introducing a carbon tax in Poland. We apply a two-step simulation procedure. First, we evaluate the economy-wide effects with a dynamic general equilibrium model. Second, we use a microsimulation model based on household budget survey data...