Sebastian Rausch

Joint Program on the Science
and Policy of Global Change
Massachusetts Institute of Technology
1 Amherst St. (Bldg. E40)
Cambridge, MA 02139

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NBER Working Papers and Publications

May 2011Distributional Impacts of Carbon Pricing: A General Equilibrium Approach with Micro-Data for Households
with Gilbert E. Metcalf, John M. Reilly: w17087
Many policies to limit greenhouse gas emissions have at their core efforts to put a price on carbon emissions. Carbon pricing impacts households both by raising the cost of carbon intensive products and by changing factor prices. A complete analysis requires taking both effects into account. The impact of carbon pricing is determined by heterogeneity in household spending patterns across income groups as well as heterogeneity in factor income patterns across income groups. It is also affected by precise formulation of the policy (how is the revenue from carbon pricing distributed) as well as the treatment of other government policies (e.g. the treatment of transfer payments). What is often neglected in analyses of policy is the heterogeneity of impacts across households even within income...

Published: Rausch, Sebastian & Metcalf, Gilbert E. & Reilly, John M., 2011. "Distributional impacts of carbon pricing: A general equilibrium approach with micro-data for households," Energy Economics, Elsevier, vol. 33(S1), pages S20-S33. citation courtesy of

June 2010Distributional Implications of Alternative U.S. Greenhouse Gas Control Measures
with Gilbert E. Metcalf, John M. Reilly, Sergey Paltsev: w16053
We analyze the distributional and efficiency impacts of different allowance allocation schemes for a national cap and trade system using the USREP model, a new recursive dynamic computable general equilibrium model of the U.S. economy. We consider allocation schemes applied to a comprehensive national cap and trade system that limits cumulative greenhouse gas emissions over the control period to 203 billion metric tons. The policy target approximates national goals identified in pending legislation. We find that the allocation schemes in all proposals are progressive over the lower half of the income distribution and proportional in the upper half of the income distribution. We also find that carbon pricing by itself (ignoring the return of carbon revenues through allowance allocations) is...

Published: Sebastian Rausch & Gilbert E. Metcalf & John M. Reilly & Sergey Paltsev, 2010. "Distributional Implications of Alternative U.S. Greenhouse Gas Control Measures," The B.E. Journal of Economic Analysis & Policy, Berkeley Electronic Press, vol. 10(2). citation courtesy of

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