Toward a just energy transition: A distributional analysis of low-carbon policies in the USA

Distributional impacts of environmental policies have become an increasingly important consideration in policymaking. To evaluate the distributional carbon pricing with different revenue recycling schemes for USA, we integrate national economic model USA household microdata that provides consumption patterns and other socio-economic characteristics thousands households. Using this combined model, explore possible trade-offs between equity efficiency schemes. We find choice scheme has a limited effect on policy, but significant impacts. Our analysis indicates policy makers can mitigate negative positive synergies efficiency.