Distributional effects of climate policy and energy-transition measures
The urgency of climate change calls for climate policy and measures to achieve the energy transition. The latter includes the shift from a fossil-fuels-based energy system to one based on renewable energy sources. While the effectiveness of these policies has been extensively studied, their distributional effects have received limited attention. These effects assess how the benefits and costs of climate policy and energy-transition measures are distributed across different groups in society. Distributional effects are not inherently problematic, yet the unequal distribution of these policies’ effects can raise concerns about fairness and persistent disadvantages, both for groups of households and in terms of a level playing field for firms. These concerns can undermine public support for these measures, delaying implementation and ultimately threatening their effectiveness.
This thesis empirically examines the distributional effects of climate policy and energy-transition measures in three distinct policy contexts. The first study analyses a compensation mechanism for electricity-intensive firms that face a disadvantage when competing internationally due to the EU Emissions Trading System, a greenhouse gas emissions regulation. The second study investigates the Dutch net-metering scheme, a policy to incentivize the uptake of solar panels by households. The last study focuses on energy poverty and its persistence over time. By considering various policy contexts and using multiple economic methods, this thesis provides academic knowledge and policy tools to assess the distributional effects of climate policy and energy-transition measures, which can ultimately be used to design climate mitigation actions that are just, politically feasible, and effective.