I develop a model of conspicuous consumption to empirically measure the importance of peer beliefs to Americans and Chinese. In the model, a consumer cares not only about the direct utility she receives from consumption, but also about the way her consumption pattern affects her peer group's...

Equitable climate policies are required for a just and rapid energy transition. Here we model a novel carbon tax design accounting for the distribution of household consumption and carbon footprints across 88 countries covering the global north and south. The policy distinguishes luxury and...