{"word_count": 132, "character_count": 946}
Six Distributional Effects of Environmental Policy / Don Fullerton. NBER Working Paper No. 16703, January 2011http://papers.nber.org/papers/w16703While prior literature has identified various effects of environmental  policy, this note uses the example of a proposed carbon permit system to  illustrate and discuss six different types of distributional effects:  (1) higher prices of carbon-intensive products, (2) changes in relative  returns to factors like labor, capital, and resources, (3) allocation of  scarcity rents from a restricted number of permits, (4) distribution of  the benefits from improvements in environmental quality, (5) temporary  effects during the transition, and (6) capitalization of all those  effects into prices of land, corporate stock, or house values.  The note  also discusses whether all six effects could be regressive, that is,  whether carbon policy could place disproportionate burden on the poor. (© NBER)