Hufendiek, Kai (Prof. Dr.-Ing.)Cunha Montenegro, Roland2025-01-212025-01-2120240938-12281915266572http://nbn-resolving.de/urn:nbn:de:bsz:93-opus-ds-155557http://elib.uni-stuttgart.de/handle/11682/15555https://doi.org/10.18419/opus-15536The European Union (EU) set ambitious targets for the reduction of greenhouse gases until 2030 in order to achieve the 1.5C objective of the Paris Agreement. Among the measures to reach this goal, carbon pricing is a promising one as it increases the costs of polluting activities and makes the use of clean technologies more attractive. While this mechanism is already used in energy-intensive sectors, such as energy conversion and chemicals, its application on the remaining sectors of the economy is treated with caution, since economical and social outputs are unclear and might jeopardize the long-term will to cut emissions. This work aims to add on understanding the socio-economic effects of a multi-regional carbon pricing scheme with focus on the household sector. It proposes that each EU Member State implements a national cap-and-trade system, where the carbon price is defined according to supply and demand of CO2 certificates. Furthermore, four revenue redistribution mechanisms are explored: reduced consumption taxes, reduced labor taxes, equal per capita redistribution and per capita redistribution according to income levels. For the analysis, a global Computable General Equilibrium model is expanded to represent distinct income groups. This feature allows for the model to assess not only economic effects, as GDP development, but also social implications, such as income distribution and tax burden across different households. Finally, it is possible to assess whether the analyzed policies lead to a double dividend, in which emissions are reduced and GDP increases, and even a social dividend, characterized by decreased income inequality. The results indicate that no revenue redistribution scheme lead to significant improvement in GDP, but each one helps decreasing certain negative aspects of pricing carbon. Reducing consumption and labor taxes lead to the highest employment levels among the analyzed policies, while per capita redistribution helps decreasing income inequality. Additionally, consumption of electricity and fossil-fuels varies according to redistribution mechanism, which is an important input for multi-model analysis.eninfo:eu-repo/semantics/openAccess330621.3doctoralThesis