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Conclusion: Tackling climate change & inequality requires an integrated perspective. Neither challenge can be fully understood in isolation—nor can policy succeed if it ignores their interdependence. We close with thoughts on a roadmap for future research at the inequality-environment nexus.

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3️⃣ Redistribution (e.g. carbon dividends) can overturn potentially regressice policy costs, but has an ambiguous effect on environmental outcoems.

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What does the evidence to date say? 1️⃣ Environmental benefits (like cleaner air) are often distributed pro-poor. 2️⃣ Policy costs (like carbon taxes) can be regressive—but context and design matters.

We highlight three key channels linking inequality and the environment: 1️⃣ How environmental benefits vary with income 2️⃣ How policy costs are distributed across households 3️⃣ How inequality and redistribution shape environmental outcomes

Summary: Environmental degradation and economic inequality are two defining challenges of the 21st century. In this article, we synthesize how they interact—and why reseacher and policymakers should not treat them in isolation.

AEA Web - Journal of Economic Literature - 63(3):840 - Abstract

🌍📈 Paper “The Economics of Inequality and the Environment” out today in the Journal of Economic Literature @aeajournals.bsky.social, joint with Jasper Meya, Lutz Sager & Ulrike Kornek. See short summary and PM by PIK linked below, and the paper here 👉 pubs.aeaweb.org/doi/pdfplus/...

pubs.aeaweb.org

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VoxEU @ CEPR @voxeu.org · 20/08/2025

Germany's eco-tax reform led to sizable reductions not only in carbon emissions but also in harmful local air pollutants. Benefits accrued disproportionately to lower-income and more polluted areas. Piero Basaglia, Sophie Behr, @moritzdrupp.bsky.social cepr.org/voxeu/column... #EconSky

Graph showing the evolution of transport fuel taxes in Germany and OECD average.

Fuel and carbon prices are typically assessed based on their effectiveness in reducing emissions, while their broader societal benefits often go overlooked. This column evaluates one of the world’s largest environmental tax experiments – Germany’s eco-tax reform – and finds that it led to sizable reductions not only in carbon emissions but also in harmful local air pollutants. Estimates reveal that two-thirds of the monetised benefits of the eco-tax stemmed from health gains linked to cleaner air and accrued disproportionately to lower-income and more polluted areas, suggesting that fuel taxes can deliver pro-poor environmental gains, even when their cost incidence is regressive.

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Robert Finger @robertfinger.bsky.social · 06/06/2025

ETH Zurich is seeking to hire an Assistant Professor (Tenure Track) of Decision Sciences. D-MTEC Contact person: Torbjørn Netland Details and Application: ethz.ch/en/the-eth-z...

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Proceedings of the National Academy of Sciences @pnas.org · 25/03/2025

How much does carbon pollution really cost society? In the latest Science Sessions episode, Frances Moore discusses new research suggesting the social cost of carbon is higher than previously estimated. Listen now: www.pnas.org/post/podcast...

A large industrial area featuring power lines emitting smoke against a cloudy sky.

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Moritz Drupp @moritzdrupp.bsky.social · 15/03/2025

Many congratulations to @pbasaglia.bsky.social & @fpavanello.bsky.social & big thanks to @auffhammer.bsky.social & @waldomarz.bsky.social as well as the whole @cesifo.org team for organizing yet another great workshop!!

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Moritz Drupp @moritzdrupp.bsky.social · 05/03/2025

Many congratulations, Leonie 🎉

Moritz Drupp @moritzdrupp.bsky.social · 04/03/2025

Very glad to be visiting this week and looking forward to the discussions!

Moritz Drupp @moritzdrupp.bsky.social · 25/02/2025

Check out this great paper by @felixschaumann.bsky.social with @edualastrue.bsky.social out now in @pnas.org that integrates climate science with climate economics to study the social cost of carbon implications of reduced AMOC weakening. Super impressive work for a first PhD chapter👇

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Frikk Nesje @frikknesje.bsky.social · 23/01/2025

"Intergenerational Discounting and Inequality" (joint with @pgpiacquadio.bsky.social) is now out as a working paper! We study all theories of justice that disentangle intergenerational discounting and intergenerational inequality, and I am amazed by the results! www.cesifo.org/en/publicati...

cesifo.org

Intergenerational Discounting and Inequality

We study all theories of justice that disentangle ethical views on intergenerational discounting and intergenerational inequality. Each “modular” social welfare function is uniquely identified by a ti...

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Moritz Drupp @moritzdrupp.bsky.social · 15/01/2025

Don’t have a particular insight into the ruling, but the product has protected my head very well when I got hit by a truck on the bike, so it’s very sad to see this discontinued.

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Moritz Drupp @moritzdrupp.bsky.social · 23/12/2024

Two environmental economics contributions among the 10 featured AEA charts 2024 @frikknesje.bsky.social @eyalfrank.bsky.social happy holidays everyone 🎄🎄

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Moritz Drupp @moritzdrupp.bsky.social · 19/12/2024

Christian Traeger @ctraeger.bsky.social has joined BlueSky. Follow him for great work on • Environmental, Resource & Climate Economics • Economic Dynamics • Risk, Uncertainty, & Decision Theory Among others, Christian has developed a whole model world: the Analytic Climate Economy (ACE)

ctraeger.bsky.social

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Moritz Drupp @moritzdrupp.bsky.social · 18/12/2024

I'd say there is a strong case to be made that more philosophising is needed in SCC-work. @paulkelleher.net, we had a structural extension category "Alternative Ethical Approaches", which didn't make it into our featured categories due to low N & is also rarely coupled with other extensions (Fig S4)

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Moritz Drupp @moritzdrupp.bsky.social · 18/12/2024

😅 this was also the most difficult survey yet to answer that I've sent out - but I had a hunch that you'd enjoy some of the qualitative comments 😀 I think a combination of what determines what we call the "SCC wedge" plus qual-comments is a useful indication for where SCC research may be headed

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Moritz Drupp @moritzdrupp.bsky.social · 17/12/2024

Check out this thread by @climatefran.bsky.social on our new paper in @pnas.org out today providing most comprehensive (i.e. still incomplete) evidence on the social cost of CO2 (SCC), with a meta-analysis + expert survey & a combination of elements of both to generate a “synthetic SCC” (mean≈$280)👇

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Moritz Drupp @moritzdrupp.bsky.social · 16/12/2024

Many congratulations, Christina, sounds like a great project!

With our teaching, we seek to stir students’ enthusiasm for the possibilities in which economic theories & empirical methods can help to better understand and manage sustainability challenges. We furthermore actively contribute to the societal debate & help to improve public policy.

We publish our work in general economics journals (e.g. AEJ: Policy, JEL @aeajournals.bsky.social), field journals (e.g. JEEM @jeem-econ.bsky.social), & interdisciplinary journals (e.g. PNAS @pnas.org, Science @science.org).

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We draw on a diversity of methods, including theory, modelling & empirical approaches (surveys, experiments, quasi-experimental designs), often in international, interdisciplinary & transdisciplinary cooperation.

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(iii) analysing fundamental preferences and sustainability-relevant behaviours, & (iv) accounting for the limited substitutability of nature when measuring & managing sustainable development.

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Our group seeks to inform & support the transition to sustainable futures. We currently focus on 4 areas: (i) studying the efficacy and distributional effects of environmental policies, (ii) exploring concepts of intergenerational justice, such as to improve estimates of the social cost of carbon,

If, in line with @ethzurich.bsky.social principles, you also seek to drive innovation, act responsibly, live inclusively, nurture well-being, build bridges and enable people to support the transition to sustainable futures, then the Sustainability Economics Group might be the right place for you!

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You have strong analytical and communication skills & excellent methodological expertise in one or more of the following areas: econometric analysis of observational data, surveys and economic experiments, applied theory, or integrated environmental-economic modelling?

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You have a PhD (or close to completion) in Environmental & Resource Econ, or related fields, & you are passionate about pursuing innovative research on sustainability challenges? You are also excited about sharing your expertise with students, decision-makers & society more broadly?

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Postdoctoral Position in the Sustainability Economics Group

We are advertising a PostDoc position in the Sustainability Economics Group at ETH Zurich (1-6 yrs, >$100K salary), offering excellent conditions to pursue innovative research projects & prepare for a professorship. Please spread the word to interested candidates: jobs.ethz.ch/job/view/JOP...

jobs.ethz.ch

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I have learned a lot in the process & hope that the paper will be a source of inspirations for those interested in the environment, inequality & beyond! Many thanks for helpful comments i.a. to @ariklevinson.bsky.social, @linusmattauch.bsky.social, @frikknesje.bsky.social

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The 3 channels determine how both environmental quality & economic inequality matter for policy appraisal. We argue that it is crucial to consider inequality-environment linkages in economic research & policy design, as neither issue can be fully understood in isolation.

(1) We describe how environmental benefits vary with household income. (2) we discuss how the cost of environmental policy is distributed across households. (3) we consider how income inequality & redistribution shape environmental outcomes.

In this paper, we synthesize conceptual mechanisms that underpin inequality-environment linkages and take stock of the relevant empirical evidence. We hereby consider 3 channels of interaction:

Moritz Drupp @moritzdrupp.bsky.social · 01/12/2024

Thrilled to see “The Economics of Inequality and the Environment” out in the Journal of Economic Literature @aeajournals.bsky.social, joint review with U.Kornek, J.Meya & L.Sager Environmental loss & economic inequality are two key challenges of our time, but how do both relate & interact?

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Don’t be afraid… at the end of the storm… you’ll never walk alone!

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Moritz Drupp @moritzdrupp.bsky.social · 29/11/2024

Apply until January 9th to take over my office 👇 www.uni-hamburg.de/en/stellenan...

uni-hamburg.de

Job advertisement

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Moritz Drupp @moritzdrupp.bsky.social · 29/11/2024

the Hamburg Center for Health Economics, the Max Planck Institute for Meteorology incl. a joint graduate school on Earth System Modelling, as well as the Cluster of Excellence "Climate, Climatic Change, and Society (CLICCS)", hopefully soon extended for a new 7-year funding period.

Moritz Drupp @moritzdrupp.bsky.social · 29/11/2024

Advertisement now out: "Professorship for Sustainability Economics" (W2) @uni-hamburg.de. I can wholeheartedly recommend coming to Hamburg: Great colleagues (smart & kind) & a superb interdisciplinary research environment - i.a. with the Center for Earth System Research and Sustainability (CEN),

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Moritz Drupp @moritzdrupp.bsky.social · 25/11/2024

Yeah, high five, super happy for you 👏 🥳🍾

Moritz Drupp @moritzdrupp.bsky.social · 13/11/2024

Many thanks to @aeajournals.bsky.social for highlighting our research providing a first systematic account of expert recommendations on carbon prices (globally & across almost 40 countries), and to all respondents for lending us their time & expertise 🙏 @frikknesje.bsky.social @cenunihh.bsky.social

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Frikk Nesje @frikknesje.bsky.social · 13/11/2024

New @aeajournals.bsky.social paper with @moritzdrupp.bsky.social & Robert Schmidt studies carbon price recommendations by >400 experts. We find a clear consensus on higher carbon prices, which help meet climate goals & reduce reliance on autocrats. See what experts can(not) agree on. #EconSky

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Moritz Drupp @moritzdrupp.bsky.social · 13/11/2024

Many thanks, very kind of you, Henning, hope to catch up soon! 👋