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  Macroeconomic structural change likely increases inequality in India more than climate policy

Leimbach, M., Huebler, M., Mahlkow, H., Montrone, L., Bukin, E., Felbermayr, G., Kalkuhl, M., Koch, J., Marcolino, M. A., Pothen, F., Steckel, J. C. (2024): Macroeconomic structural change likely increases inequality in India more than climate policy. - Environmental Research Letters, 19, 4, 044070.
https://doi.org/10.1088/1748-9326/ad34e9

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Datensatz-Permalink: https://publications.pik-potsdam.de/pubman/item/item_29713 Versions-Permalink: https://publications.pik-potsdam.de/pubman/item/item_29713_4
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 Urheber:
Leimbach, Marian1, Autor              
Huebler, Michael2, Autor
Mahlkow, Hendrik2, Autor
Montrone, Lorenzo2, Autor
Bukin, Eduard2, Autor
Felbermayr, Gabriel2, Autor
Kalkuhl, Matthias2, Autor
Koch, Johannes1, Autor              
Marcolino, Marcos Araujo1, Autor              
Pothen, Frank2, Autor
Steckel, Jan Christoph2, Autor
Affiliations:
1Potsdam Institute for Climate Impact Research, ou_persistent13              
2External Organizations, ou_persistent22              

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 Zusammenfassung: The decarbonization of India's economy will have different effects across income groups. As India is in the middle of the transformation process from an agriculture-based economy towards an industry- and service-based economy, called economic structural change, the extent of income distribution across households strongly depends also on the speed of economic transformation. While a number of recent studies have analyzed the distributional effects of carbon pricing, the specific role of structural change across sectors has not been in the focus of the related literature. Our study contrasts distributional effects from climate policy with distributional effects from structural change in India and asks how far carbon pricing supports or hinders structural change and development. We develop and apply a comprehensive model framework that combines economic growth and international trade dynamics related to structural change with detailed household income and expenditure data for India. Our study shows that changes in income and inequality due to carbon pricing vary with the changes in the sectoral structure of economies. Our results indicate that carbon pricing tends to delay economic structural change by retarding the reallocation of economic activities from the agricultural sector to the manufacturing sector. Furthermore, the results emphasize that the increase in inequality due to structural change is substantially stronger than due to carbon pricing. Consequently, socially sensitive policies supporting the process of structural transformation appear to be more important for poor households than lowering climate policy ambitions.

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Sprache(n): eng - Englisch
 Datum: 2024-03-182024-03-182024-04-09
 Publikationsstatus: Final veröffentlicht
 Seiten: 26
 Ort, Verlag, Ausgabe: -
 Inhaltsverzeichnis: -
 Art der Begutachtung: Expertenbegutachtung
 Identifikatoren: DOI: 10.1088/1748-9326/ad34e9
Organisational keyword: RD3 - Transformation Pathways
PIKDOMAIN: RD3 - Transformation Pathways
Working Group: Macroeconomic modeling of climate change mitigation and impacts
MDB-ID: No MDB - stored outside PIK (see DOI)
Model / method: REMIND
Regional keyword: Asia
Research topic keyword: Carbon Pricing
Research topic keyword: Climate Policy
Research topic keyword: Economics
Research topic keyword: Inequality and Equity
OATYPE: Gold Open Access
PIKDOMAIN: RD5 - Climate Economics and Policy - MCC Berlin
Organisational keyword: RD5 - Climate Economics and Policy - MCC Berlin
Working Group: Welfare and Policy Design
 Art des Abschluß: -

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Projektname : ROCHADE
Grant ID : 01LA1828A
Förderprogramm : -
Förderorganisation : Bundesministerium für Bildung und Forschung (BMBF)
Projektname : ELEVATE
Grant ID : 101056873
Förderprogramm : Horizon Europe (HE)
Förderorganisation : European Commission (EC)
Projektname : Gefördert im Rahmen des Förderprogramms "Open Access Publikationskosten" durch die Deutsche Forschungsgemeinschaft (DFG) - Projektnummer 491075472.
Grant ID : -
Förderprogramm : Open-Access-Publikationskosten (491075472)
Förderorganisation : Deutsche Forschungsgemeinschaft (DFG)

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Titel: Environmental Research Letters
Genre der Quelle: Zeitschrift, SCI, Scopus, p3, oa
 Urheber:
Affiliations:
Ort, Verlag, Ausgabe: -
Seiten: - Band / Heft: 19 (4) Artikelnummer: 044070 Start- / Endseite: - Identifikator: CoNE: https://publications.pik-potsdam.de/cone/journals/resource/150326
Publisher: IOP Publishing