Is there a Green Dividend of National Redistribution?

Date

2023-01-01

Author

Gürer, Eren
Weichenrieder, Alfons J.

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CO2 emissions are disproportionately caused by more affluent consumers. In the political debate, this fact has triggered the demand for income redistribution and wealth taxes not only to reduce inequality but also to reduce CO2 emissions. This paper calculates the possible size of a green dividend, i.e., a reduction in total national CO2 emissions, of redistribution in 26 countries and concludes that, for most EU countries, it is negative if the redistribution is efficient, in the sense that it keeps average incomes constant. If the redistribution introduces inefficiencies that lead to total income losses, the negative green dividend, otherwise associated with additional redistribution, may be avoided.

Subject Keywords

CO2 emissions, Environment, Green dividend, Inequality, Redistribution

URI

https://hdl.handle.net/11511/104756

Collections

Department of Economics, Article