Ahlvik Lab

University of Helsinki

Manner-Suomi (FI1) · Finland

ERC-funded
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Research focus

ERC Starting Grant · 2023

Green tax reform for a just climate transition (GRETA)

The European Union’s ambitious climate policies will have wide-ranging distributional impacts in societies. Yet, it is poorly understood how to mitigate the adverse impacts and how compensation mechanisms can be designed to allocate funds to those most in need. GRETA introduces an integrated approach for climate policies and inequality, and will increase our understanding on how to reach climate targets equitably. In the theoretical part, we characterize a green tax reform that creates sufficient incentives to cut emissions, generates public revenue for the green transition, and ensures that costs are fairly distributed across the society. Individuals hold private information about their…

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