How society can support the energy transition through a fair distribution of costs
Constructive solutions for potential conflicts
Climate neutrality cannot be achieved without a joint effort by society, business and politics. Distributional issues and the social organisation of the energy transition are therefore key imperatives in pursuing this goal. This is why there is a need for fair measures and a fair distribution of costs, especially when it comes to pricing emissions. The extent to which society supports the energy transition can also be measured by people’s willingness to pay for climate-neutral technologies. Institutional reforms – such as climate dividend or targeted compensation – can be used to recycle carbon pricing revenues back to private households to avoid cases of hardship. In particular, if poorer households spend a high proportion of their income on environmentally harmful consumer goods, climate money can have an equalising effect.
How will the costs be distributed across households if there is increasing investment in climate-neutral technologies? How should the transformation be financed by public budgets? What does a successful adaptation of the tax and transfer system look like? Ariadne analyses these questions with the help of microsimulations, scenario calculations and macroeconomic models. On this basis, an inventory will be created to record possible financing models for the energy transition up to 2050. In addition to fiscal aspects, it will also include insights from panel surveys on citizens’ policy preferences. Citizen deliberations and stakeholder forums will reflect on the fragile trust that exists between experts, politicians and the public. The aim is to gain insights into possible conflicts and how to avoid them, while also developing constructive potential solutions for the future.
News from the project
Electricity Transition, Transport transition, Distributive justice |
Have your say, help shape the energy transition: What the Ariadne citizens’ conferences show about the energy transition
From rising energy costs for households to the expansion of local renewable energies, the population is increasingly directly affected by the energy and transportation transition, and they want to get involved and have their say. That is why, as …
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