Distribution battle — economists: a CO2 tax doesn't have to burden the poorest

News article

08/14/2019

Experts from IHS and Wifo are in agreement: a CO2 tax is a sensible instrument for achieving climate targets — but it would need to be embedded in an overall concept, for example in conjunction with tax reductions.

In the Ö1 morning news programme, Claudia Kettner, climate expert at Wifo, argues that CO2 taxes tend to lead to a reduction in CO2 emissions — the distributional effect, whereby such a tax would place a greater burden on lower-income households, could be offset through countermeasures such as reductions in labour taxes.

https://oe1.orf.at/player/20190813/561 003 (from min 7:10)

Back