An international research team has developed a model showing that global carbon pricing with revenue redistribution can simultaneously slow climate change, boost prosperity, and reduce economic inequality.
According to the Potsdam Institute for Climate Impact Research (PIK), the optimal strategy could be a single global carbon price combined with financial support for the poorest countries, or national redistribution of carbon tax revenues.
The scientists emphasize that equity plays a crucial role in the acceptance of climate policy. If the burden falls disproportionately on the poorest segments of the population, it could undermine support for environmental measures.
The study is published in the journal Proceedings of the National Academy of Sciences and proposes several scenarios that allow for the simultaneous reduction of emissions and strengthening of social stability.
