Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households
Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/).
| Main Authors: | , , |
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| Format: | Technical Report |
| Language: | en_US |
| Published: |
MIT Joint Program on the Science and Policy of Global Change
2011
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| Online Access: | http://globalchange.mit.edu/pubs/abstract.php?publication_id=2168 http://hdl.handle.net/1721.1/66303 |
| _version_ | 1811068357813731328 |
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| author | Rausch, Sebastian Metcalf, Gilbert E. Reilly, John M. |
| author_facet | Rausch, Sebastian Metcalf, Gilbert E. Reilly, John M. |
| author_sort | Rausch, Sebastian |
| collection | MIT |
| description | Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/). |
| first_indexed | 2024-09-23T07:54:49Z |
| format | Technical Report |
| id | mit-1721.1/66303 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T07:54:49Z |
| publishDate | 2011 |
| publisher | MIT Joint Program on the Science and Policy of Global Change |
| record_format | dspace |
| spelling | mit-1721.1/663032019-04-09T15:30:22Z Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households Rausch, Sebastian Metcalf, Gilbert E. Reilly, John M. Abstract and PDF report are also available on the MIT Joint Program on the Science and Policy of Global Change website (http://globalchange.mit.edu/). Many policies to limit greenhouse gas emissions have at their core efforts to put a price on carbon emissions. Carbon pricing impacts households both by raising the cost of carbon intensive products and by changing factor prices. A complete analysis requires taking both effects into account. The impact of carbon pricing is determined by heterogeneity in household spending patterns across income groups as well as heterogeneity in factor income patterns across income groups. It is also affected by precise formulation of the policy (how is the revenue from carbon pricing distributed) as well as the treatment of other government policies (e.g. the treatment of transfer payments). What is often neglected in analyses of policy is the heterogeneity of impacts across households even within income or regional groups. In this paper, we incorporate 15,588 households from the U.S. Consumer and Expenditure Survey data as individual agents in a comparative-static general equilibrium framework. These households are represented within the MIT USREP model, a detailed general equilibrium model of the U.S. economy. In particular, we categorize households by full household income (factor income as well as transfer income) and apply various measures of lifetime income to distinguish households that are temporarily low-income (e.g., retired households drawing down their financial assets) from permanently low-income households. We also provide detailed within-group distributional measures of burden impacts from various policy scenarios. This study received support from the MIT Joint Program on the Science and Policy of Global Change, which is funded by a consortium of government, industry and foundation sponsors. 2011-10-17T19:29:25Z 2011-10-17T19:29:25Z 2011-07 Technical Report http://globalchange.mit.edu/pubs/abstract.php?publication_id=2168 http://hdl.handle.net/1721.1/66303 Report no. 202 en_US ;Report no. 202 An error occurred on the license name. An error occurred getting the license - uri. application/pdf MIT Joint Program on the Science and Policy of Global Change |
| spellingShingle | Rausch, Sebastian Metcalf, Gilbert E. Reilly, John M. Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households |
| title | Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households |
| title_full | Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households |
| title_fullStr | Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households |
| title_full_unstemmed | Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households |
| title_short | Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households |
| title_sort | distributional impacts of carbon pricing a general equilibrium approach with micro data for households |
| url | http://globalchange.mit.edu/pubs/abstract.php?publication_id=2168 http://hdl.handle.net/1721.1/66303 |
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