The impact of carbon taxation and revenue redistribution on poverty and inequality
Malerba, Daniele / Xiangjie Chen / Kuishuang Feng / Klaus Hubacek / Yannick Oswald (2022)
Policy Brief 11/2022
A carbon tax of US$50/tCO2 with redistribution of the raised revenue to households could substantially reduce global poverty by between 16% and 27% (110 to 190 million people), and lower inequality. The impact depends on the policy design and the targeting mechanisms used for revenue redistribution.