For whom are the costs and benefits of climate policy?

An initial, exploratory study indicates that the costs and benefits of climate policy do not accrue evenly to the various categories of household. When it comes to the direct costs of greenhouse gas emissions (from natural gas and vehicle fuels), households pay for the ensuing climate damage in proportion to consumption. In the case of the indirect emissions caused by households via consumer products, however, industry pays nothing for climate damage. It is thus mainly higher incomes and industry that benefit from climate policy (subsidies for renewable energy and energy efficiency).

Based on this initial study, two follow-up studies were carried out in 2017: