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The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Friebel, Guido / Mendola, Mariapia / Requate, Till / Tsui, Kevin / Wichardt, Philipp / Zulehner, Christine

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The Distributional Impact of Climate Policy

Dale W Jorgenson1 / Richard Goettle2 / Mun S Ho3 / Daniel T Slesnick4 / Peter J Wilcoxen5

1Harvard University,

2Northeastern University,

3Resources for the Future,

4University of Texas,

5Syracuse University,

Citation Information: The B.E. Journal of Economic Analysis & Policy. Volume 10, Issue 2, ISSN (Online) 1935-1682, DOI: 10.2202/1935-1682.2528, April 2011

Publication History

Published Online:
2011-04-05

Abstract

The purpose of this paper is to present a new methodology for evaluating the distributional impacts of climate policy. This methodology builds directly on the framework introduced by Jorgenson, Slesnick, and Wilcoxen (1992), but generalizes it by including leisure time, as well as goods and services, in the measure of household welfare. We provide detailed results for 244 different types of households distinguished by demographic characteristics. In addition, we evaluate the overall impact of a cap-and-trade system, as represented in Energy Modeling Forum 22. While there is a wide range of outcomes for different demographic groups, the impact on economic welfare is regressive and generally negative but relatively small.

Keywords: distribution; climate policy; leisure; goods; demographic groups

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[1]
Dale W. Jorgenson, Richard J. Goettle, Mun S. Ho, and Peter J. Wilcoxen
National Tax Journal, 2015, Volume 68, Number 1, Page 121

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