Inequality prevents strict regulations

COP21

Costly carbon regulations are colliding with the declining wages of low-income households. Naturally, these voters prioritize their own economic concerns.

Governments cannot afford to worsen inequality

The main stumbling block to tougher regulations: persistently low wages

Energy costs represent a larger share of the budget for lower-income households. Consequently, any energy regulation would disproportionately impact the poor. More info


Cautious implementation of energy-efficiency standards

Authorities are cautious about implementing energy-efficiency standards, due to concerns that it could result in higher prices for consumers across all income levels. More info


Subsidies: plagued by arbitrariness

Subsidies are criticized for their arbitrary nature, raising concerns about their effectiveness as a primary instrument for supporting the green transition. More info


Carbon pricing would disproportionately burden the low-income

A carbon-pricing scheme should replace subsidy programs, with these subsidies gradually phased out as the green market matures. More info


Could an innovative system unlock the situation?

If subsidy programs and carbon-pricing schemes excessively hamper the economy, could an innovative system provide a solution? More about a new idea