Podcast

Deep Focus: Balancing distributional inequalities of climate policies

Bruegel fellow Georg Zachmann talks through a Bruegel Blueprint he has co-authored, looking into the potential distributional effects of climate policies, in another episode of the Deep Focus series.

By: Date: December 7, 2018 Topic: Energy & Climate

Climate change is is one of the big questions of this century, and mitigating its effects remains an enormous challenge. Decarbonisation will require a massive shift in our economies. Heating, transport, electricity and industry will have to be transitioned to a world without fossil fuels. Agriculture and industry will have to find new ways to reduce emissions. This aim – as ambitious as it is essential – necessitates intrusive climate policies.

In this episode of Deep Focus, Sean Gibson interviews Georg Zachmann, a co-author of a recently published Blueprint on distributional effects of climate policies. They untangle the complicated picture of said effects, which may vary depending on the policy tool and its design, the sector addressed and the initial socio-economic conditions in the country. Some policy tools such as carbon taxes may leave low-income households worse off, while policies such as taxes on aviation may leave them better off relative to high-income households. Others, like public investment and agriculture policies, still have unclear effects.

One thing is for certain: whatever distributional effects climate policies may have, they constitute no argument against their implementation. Climate change would leave everyone worse off and disproportionately hit the poorest part of the population. It is therefore essential to design policies in a way that minimises the adverse effects on those most vulnerable.

For further reading, you might consider an opinion piece by Simone Tagliapietra and Georg Zachmann on what the “gilets jaunes” movement tells us about environment and climate policies, as well as their blog post on the EU energy industry transformation.

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By: The Sound of Economics Topic: Global Economics & Governance Date: February 19, 2020
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By: The Sound of Economics Topic: Finance & Financial Regulation Date: February 17, 2020
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How will the border carbon adjustment be implemented and what will be the implications?

Speakers: Cecilia Bellora, Gabriel Felbermayr, Joost Pauwelyn, André Sapir and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels
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By: The Sound of Economics Topic: Innovation & Competition Policy Date: February 14, 2020
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Mar
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Speakers: Yamini Aiyar, Suman Bery, Navroz K Dubash, Alicia García-Herrero, Rajat Kathuria, Partha Mukhopadhyay, Ananth Padmanabhan, Georgios Petropoulos, André Sapir, Shyam Saran, Simone Tagliapietra and Marc Vanheukelen Topic: Global Economics & Governance Location: India International Centre, Lodhi Gardens, Lodhi Estate, New Delhi, Delhi, India
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By: The Sound of Economics Topic: Innovation & Competition Policy Date: February 5, 2020
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By: The Sound of Economics Topic: European Macroeconomics & Governance Date: January 29, 2020
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By: The Sound of Economics Topic: Innovation & Competition Policy Date: January 20, 2020
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By: The Sound of Economics Topic: Energy & Climate Date: January 16, 2020
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By: The Sound of Economics Topic: Finance & Financial Regulation Date: January 16, 2020
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By: The Sound of Economics Topic: Global Economics & Governance Date: January 6, 2020
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Opinion

The Green Deal is not just one of many EU projects, it is the new defining mission

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By: Jean Pisani-Ferry Topic: Energy & Climate Date: January 3, 2020
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