Distributional effects of expanding climate targets beyond CO2
摘要
Targeting non-CO2 GHG is promoted as cost-effective, yet distributional consequences remain unclear. Here we compare CO2-only and multi-GHG carbon pricing, calibrated to the same climate outcome, across 201 household expenditure groups in 168 countries. Using a global social accounting matrix tracing price and income effects through supply chains, we find that adding non-CO2 GHGs makes carbon pricing more regressive: the relative burden rises for poorer households and falls for richer ones. The mechanism is compositional: relative to CO2-only pricing, multi-GHG pricing lowers energy prices but raises food prices; because poorer households devote larger budget shares to food, they experience larger burden, while richer households, whose consumption is more energy-intensive and whose incomes are less exposed, face smaller relative loss. Regionally, richer households in low-income regions, especially sub-Saharan Africa, face sizable cost increases. Our findings highlight the need for equity-oriented design to keep carbon pricing socially acceptable.