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Carbon taxation makes poor people poorer

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2 years 4 months ago #1 by Editor
What a carbon tax can do and why it cannot do it all

There are good reasons why governments may not want to use carbon taxes, and one of them relates to their welfare impacts. For example, a carbon tax on fossil fuels is often regressive in its impact- hurting poorer people relatively more than richer ones. Even when it might be progressive, poorer people still suffer a welfare loss when prices rise, making their consumption basket more expensive.

blogs.worldbank.org/energy/what-carbon-tax-can-do-and-why-it-cannot-do-it-all

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