Climate action with revenue recycling has benefits for poverty, inequality and well-being


Nature Climate Change, Published online: 29 November 2021; doi:10.1038/s41558-021-01217-0

Climate policy analyses often ignore the possibility of progressive redistribution of carbon tax revenues and assume that mitigation cost will burden the poor in the short term. Integrated Assessment Model (IAM) estimation suggests such redistribution could reduce inequality, alleviate poverty and increase well-being globally.