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GTAP Resources: Resource Display

GTAP Resource #7457

"Spatial Inequality in the European ETS-2 Market"
by Perdana, Sigit and Marc Vielle


Abstract
This groundbreaking study exposes the unequal burden of the EU’s second Emissions Trading System (ETS-2) on households across 1,160 European regions, transforming how we understand the intersection of climate policy and social equity. By integrating household survey data, economic modeling, and spatial mapping, it reveals the stark implications of a projected carbon price of Euro 100 per ton of CO2 by 2030 on heating and transportation costs. The findings show that ETS-2 risks deepening socioeconomic divides—especially for low-income, rural households with larger families—amplifying already existing vulnerabilities. Most alarmingly, regions with lower GDP per capita,
particularly in Central and Eastern Europe, are hit hardest. This study not only reaffirms the regressive nature of carbon pricing mechanisms but also delivers a wake-up call for policymakers: without regionally targeted and socially just mitigation measures, ETS-2 could widen inequality across Europe. The insights offered here are essential for shaping a climate transition that is not only green, but also fair.


Resource Details (Export Citation) GTAP Keywords
Category: 2025 Conference Paper
Status: Not published
By/In: Presented during the 28th Annual Conference on Global Economic Analysis (Kigali, Rwanda)
Date: 2025
Version: 1
Created: Perdana, S. (4/10/2025)
Updated: Perdana, S. (4/10/2025)
Visits: 21
- Trade and the environment
- Demographics
- Economic geography
- Model integration and coupling
- Multi-scale and geospatial modeling
- Econometric methods
- European Union


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  File format Paper  (5.3 MB)   Replicated: 0 time(s)


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Comments (1 posted)
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Posted by: Perdana, Sigit   4/10/2025 5:06:00 AM
Paper to be presented at GTAP 28th Conference