Abstract
Since the signing of the 2030 Agenda for Sustainable Development by the United Nations Member States and the Yellow vest movement, it is clear that emission‐reducing policies should consider their distributional impacts to ensure a sustainable and equitable growth compatible with the Paris Agreement goals. To this end, the design of environmental and energy policies should be accompanied by an interdisciplinary analysis that includes potential effects on distinct groups of society (defined by income, age, or location), regions, and sectors. This work synthesizes common modeling frameworks used to assess technical, socio‐economic, and environmental aspects in policy analysis and the recent progress to portray distributional impacts in each of them. Furthermore, the main indicators produced by each method are highlighted and a critical review pointing to gaps and limitations that could be addressed by future research is presented.
Highlights
Introduction richest62 people in the world was equal to that of the bottom half.[3]The consideration of distributional impacts in the analysis of theTo tackle the issue of inequality, the United Nations adopted energy and environmental policies has risen in importance as in 2015 the 2030 Agenda for Sustainable Development, in which more ambitious climate policies are implemented worldwide, reducing economic disparities is one of the seventeen sustainoften imposing taxation on energy products
We reviewed several modeling frameworks that are 1) commonly utilized for energy and environmental policy analysis and 2) capable of assessing the distributional impacts of such policies
This study comes from the necessity to better contemplate the distributional aspects of measures that aim at decreasing GHG emissions
Summary
We provide a short literature overview of possible distributional impacts of different environmental policies. Ignoring possible distributional effects may, result in less effective policies and even increased inequalities due to missing policies to mitigate potential impacts.[5,7,8] These are, often only included on a broader level in policy impact assessments without any detailed analysis of how different socio-economic groups are affected.[10] Existing policy impact assessment guidelines often only state that some social and environmental impact assessment should be conducted[11] and offer scope for interpretation regarding the depth of analysis and applied methodologies Such contextual factors flow into the model design, which often ignores the complexity of distributional impacts by focusing predominantly on economic efficiency instead of equity.[5]. Distributional impacts have typically been assessed through linking with other models, e.g., macroeconomic, or by increasing the level of detail in a sector through disaggregation
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