Inequality and Climate Change

Does climate change affect individuals well-being in an unequal way?

Equity issues are central to policy debates about climate change. But what is the role of inequality between and within nations on carbon emissions? Stephan Klasen form the University of Göttingen highlights significant and complex interactions between carbon emissions and income distribution. Lowering inequality can bring controversial effects on climate change depending on the average income of the country. Economists need to focus better on these complex interactions and find alternative solutions to the first-best climate policy. A priority in shaping new climate policy alternatives would be to consider how to decouple global carbon emissions from growth. The talk then discusses what are the implications of the latter for global and European climate policy, including the Paris Agreement.