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Journal Article

The Economics of a Just Transition

Authors

Carballo,  Ireri Hernandez
External Organizations;

Verdolini,  Elena
External Organizations;

/persons/resource/Jan.Steckel

Steckel,  Jan Christoph       
Potsdam Institute for Climate Impact Research;

Tavoni,  Massimo
External Organizations;

Vona,  Francesco
External Organizations;

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742029.pdf
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Citation

Carballo, I. H., Verdolini, E., Steckel, J. C., Tavoni, M., Vona, F. (2026): The Economics of a Just Transition. - Review of Environmental Economics and Policy, 20, 2, 260-282.
https://doi.org/10.1086/742029


Cite as: https://publications.pik-potsdam.de/pubman/item/item_34840
Abstract
Addressing climate change requires policies that are ethically defensible, politically acceptable, and implementable. The concept of a “just transition”—a decarbonization process that avoids leaving workers and communities behind and mitigates burdens on vulnerable and historically marginalized groups—has gained prominence in academic and policy debates. This article bridges these debates with insights from environmental economics. We identify and examine four key dimensions of a just transition—distributional, restorative, procedural, and recognition justice—and use them to map existing economic research. We highlight the contributions and limitations of environmental economics in addressing justice concerns and discuss gaps that future research should address to better inform the design of equitable climate policies.