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Centre for Business and Productivity Dynamics

Centre for Business and Productivity Dynamics (IWH-CBPD) The Centre for Business and Productivity Dynamics (CBPD) was founded in January 2025 and works with policy and research…

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Research Groups

Our Research Groups Banking, Regulation, and Incentive Structures Data Science in Financial Economics Econometric Tools for Macroeconomic Forecasting and Simulation Education,…

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Research Clusters

Three Research Clusters Research Cluster "Economic Dynamics and Stability" Research Questions This cluster focuses on empirical analyses of macroeconomic dynamics and stability.…

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Guiding Theme and Research Profile

Tasks of the IWH Guided by its mission statement , the IWH places the understanding of the determinants of long term growth processes at the centre of the research agenda. Long…

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Organisation of Research

Tasks of the IWH Guided by its mission statement , the IWH places the understanding of the determinants of long term growth processes at the centre of the research agenda. Long…

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A Multi-Model Assessment of Inequality and Climate Change

Marie Young-Brun, et al.
Research Square, 2024
Abstract

Climate change and inequality are critical and interrelated defining issues for this century. Despite growing empirical evidence on the economic incidence of climate policies and impacts, mainstream model-based assessments are often silent on the interplay between climate change and economic inequality. For example, all the major model comparisons reviewed in IPCC neglect within-country inequalities. Here we fill this gap by presenting a model ensemble of eight large-scale Integrated Assessment Models belonging to different model paradigms and featuring economic heterogeneity. We study the distributional implications of Paris-aligned climate target of 1.5 degree and include different carbon revenue redistribution schemes. Moreover, we account for the economic inequalities resulting from residual and avoided climate impacts. We find that price-based climate policies without compensatory measures increase economic inequality in most countries and across models. However, revenue redistribution through equal per-capita transfers can offset this effect, leading to on average decrease in the Gini index by almost two points. When climate benefits are included, inequality is further reduced, but only in the long term. Around mid-century, the combination of dried-up carbon revenues and yet limited climate benefits leads to higher inequality under the Paris target than in the Reference scenario, indicating the need for further policy measures in the medium term.

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Overview, Contact and Opening Hours

Library The IWH scientific library is specialized in economics, corresponding to the Institute's research profile. The library stock contains especially literature on the…

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Department Profiles

Research Profiles of the IWH Departments All doctoral students are allocated to one of the four research departments (Financial Markets – Laws, Regulations and Factor Markets –…

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Standards

Achieving Scientific Quality and Meeting Social Standards In order to secure the highest standards, the courses and the research projects will be evaluated. Evaluations form the…

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16.08.2023 • 21/2023

Gutachten zu Kohlemilliarden: Transparenz der Mittelvergabe erhöhen

Mit rund 41 Milliarden Euro will der Bund den Regionen helfen, die vom Kohleausstieg betroffen sind. Wird das Geld sinnvoll genutzt? Eine Analyse der Wirtschaftsforschungsinstitute IWH und RWI gibt erstmals einen Überblick über das Programm und benennt Verbesserungspotenziale.

Oliver Holtemöller
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