{"word_count": 253, "character_count": 1802}
Distributional  Impacts of Carbon Pricing: A General Equilibrium Approach with  Micro-Data for Households / Sebastian Rausch, Gilbert E. Metcalf,  John M. Reilly. NBER working paper, n° 17087http://papers.nber.org/papers/w17087Many  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 or regional groups. In this paper, we  incorporate 15,588 households from the U.S. Consumer and Expenditure  Survey data as individual agents in a comparative-static general  equilibrium framework. These households are represented within the MIT  USREP model, a detailed general equilibrium model of the U.S. economy.  In particular, we categorize households by full household income (factor  income as well as transfer income) and apply various measures of  lifetime income to distinguish households that are temporarily  low-income (e.g., retired households drawing down their financial  assets) from permanently low-income households. We also provide detailed  within-group distributional measures of burden impacts from various  policy scenarios. (© authors)