Artikel

Facilitating the transport and heating transition: Strengthen carbon pricing, introduce a climate dividend, and reduce adaptation costs

Despite the easing of prices on the energy markets, private households continue to be burdened by elevated prices. The planned increase the planned increase in the carbon price for transport and heating will raise the burden on private households even further. These additional costs are unequally distributed and have a regressive effect, as poor households must spend much more relative to their net income than rich households. Using the tax revenue from carbon pricing to fund a flat-rate climate dividend per person reduces this regressive effect substantially. However, low-income households with a high level of energy consumption, which are impacted in particular, need additional relief or more support in conserving energy. Adaptation responses to the higher prices are uncertain, but could result in emissions savings of up to 30 percent.

Language
Englisch

Bibliographic citation
Journal: DIW Weekly Report ; ISSN: 2568-7697 ; Volume: 13 ; Year: 2023 ; Issue: 23 ; Pages: 163-170

Classification
Wirtschaft
Energy: Demand and Supply; Prices
Personal Income, Wealth, and Their Distributions
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Subject
Energy prices
distribution
transfer reform

Event
Geistige Schöpfung
(who)
Bach, Stefan
Buslei, Hermann
Felder, Lars
Haan, Peter
Event
Veröffentlichung
(who)
Deutsches Institut für Wirtschaftsforschung (DIW)
(where)
Berlin
(when)
2023

DOI
doi:10.18723/diw_dwr:2023-23-1
Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Artikel

Associated

  • Bach, Stefan
  • Buslei, Hermann
  • Felder, Lars
  • Haan, Peter
  • Deutsches Institut für Wirtschaftsforschung (DIW)

Time of origin

  • 2023

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