The global consumer incidence of carbon pricing: Evidence from trade | Lutz Sager - Grantham Research Institute on climate change and the environment<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.lse.ac.uk\/granthaminstitute\/events\/lutz-sager-grantham-workshop\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The global consumer incidence of carbon pricing: Evidence from trade | Lutz Sager - Grantham Research Institute on climate change and the environment\" \/>\n<meta property=\"og:description\" content=\"Lutz will be discussing his paper The Global Consumer Incidence of Carbon Pricing: Evidence from Trade. 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{"id":43745,"date":"2018-12-11T09:40:50","date_gmt":"2018-12-11T09:40:50","guid":{"rendered":"https:\/\/www.lse.ac.uk\/granthaminstitute\/?post_type=event&p=43745"},"modified":"2023-03-17T15:57:13","modified_gmt":"2023-03-17T15:57:13","slug":"lutz-sager-grantham-workshop","status":"publish","type":"event","link":"https:\/\/www.lse.ac.uk\/granthaminstitute\/events\/lutz-sager-grantham-workshop\/","title":{"rendered":"The global consumer incidence of carbon pricing: Evidence from trade | Lutz Sager"},"content":{"rendered":"\n

Lutz will be discussing his paper The Global Consumer Incidence of Carbon Pricing: Evidence from Trade.<\/em><\/p>\n

Abstract<\/strong><\/p>\n

The consumer cost of carbon pricing is globally regressive, more so across countries than within—it falls harder on average consumers in poor countries than on poor consumers in average countries. I show this using a novel, global approach to estimating the consumer incidence of carbon pricing. On the demand side, I allow consumption to differ both between countries and across income levels within them. On the supply side, I model substitution of inputs along global value chains. I identify all model parameters from data on bilateral trade flows. Similar to a global carbon price, the introduction of the EU Emissions Trading System (ETS) in 2005 was likely regressive. The results are different for a carbon price on traded goods. The cost of a hypothetical Border Adjustment to complement the EU ETS follows an inverted U-shape—the richest and the poorest consumers in the EU incur the largest cost.<\/p>\n\n","protected":false},"excerpt":{"rendered":"\n

Lutz will be discussing his paper The Global Consumer Incidence of Carbon Pricing: Evidence from Trade. 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