Feindt, SimonKornek, UlrikeLabeaga Azcona, José MaríaSterner, ThomasWard, Hauke2025-01-242025-01-242021Simon Feindt, Ulrike Kornek, José M. Labeaga, Thomas Sterner, Hauke Ward, Understanding regressivity: Challenges and opportunities of European carbon pricing, Energy Economics, Volume 103, 2021, 105550, ISSN 0140-9883, https://doi.org/10.1016/j.eneco.2021.1055500140-9883 | eISSN 1873-6181https://doi.org/10.1016/j.eneco.2021.105550https://hdl.handle.net/20.500.14468/25497The registered version of this article, first published in “Energy Economics, Volume 103, 2021", is available online at the publisher's website: Elsevier, https://doi.org/10.1016/j.eneco.2021.105550 La versión registrada de este artículo, publicado por primera vez en “Energy Economics, Volume 103, 2021", está disponible en línea en el sitio web del editor: Elsevier, https://doi.org/10.1016/j.eneco.2021.105550We examine how a European carbon price will affect citizens by studying its incidence on households in 23 countries of the EU. At the national level, the distributional impact before revenue recycling is mainly neutral, sometimes progressive. At an aggregate EU level, however, the impact is regressive because some low-income countries would be strongly affected by the carbon price. While national redistribution can yield a progressive EU incidence, we show that European-wide redistribution is more effective for the most affected households. We offer two indicators to offset regressive distributional effects of EU climate policy, such as the recently proposed Green Deal. The first renders the tax burden proportional; the second focuses on compensating the households most severely affected. Including both indicators in European redistribution makes for a better representation of the initial burden of carbon pricing and could increase public acceptability.eninfo:eu-repo/semantics/openAccess53 Ciencias Económicasartículocarbon pricingdistributional effecthousehold dataEuropean Union