WP4 - Social heterogeneity in integrated assessment models

This work package aims at contributing to a better understanding of how inequality between and within countries influences the social cost of carbon and climate policy. We will in particular study how policy should take into account cost incidence, the redistribution of the carbon tax revenues, and the distribution of climate change damages over countries and households.

To do so, we will use conceptual analysis, analytical models and numerical Integrated Assessment Models. We will use two kinds of them: a compact cost-benefit analysis model (NICE) and a detailed process model (REMIND-MAgPIE). Using these models in an aligned approach but building on their complementary strengths, we will analyze the distribution of costs and damages and the redistributive consequences of policies.