The distributional effect of environmental tax policy in developing countries

What is the distribution of environmental footprints from consumption across the globe?

This project is part of a larger project called ‘The Ecological Consumption Atlas’ in which we will use new data and a new method to better describe the environmental externalities that arise from consumption choices.

This project will conduct detailed analysis of the role of trade, as well as document patterns of heterogeneity across countries and across socio-demographic groups within countries.

Our aim is to help inform the design of inclusive environmental policies, such as emissions trading schemes, carbon taxes, and carbon tariffs, by studying their distributional effects both globally and within countries.

We will combine micro-data on household expenditures with environmental input-output tables and life cycle data on environmental footprints of specific footprints to construct Environmental Engel Curves, to describe how the environmental footprint from consumption changes with household income both within and across countries.