Raavi Aggarwal (MCC Berlin): "Carbon pricing and household welfare: Evidence from Uganda"
Jann Lay (GIGA): "Stepping down the ladder: The unintended impacts of fossil fuel subsidy removal in a developing country"
Jörg Peters (RWI): "Energy efficiency and local rebound effects"
The Global South including Africa are increasingly in the focus of debates in climate policy. Because of growing carbon emissions and lock-in effects related to infrastructure and power plant investments, there are prominent claims for immediate policy action, for example through carbon pricing. Yet, little is known about the potential the distributional effects and how these instruments generally interact with poverty alleviation. While first-order distributional effects seem to be generally progressive, there is a concern that especially poor households might be forced back into the use of traditional biomass by higher prices for modern fuels, with adverse effects on health, education and gender. Thus, there is a potential trade-off between climate policy and development goals. In this session, we examine selected aspects of the climate-development relationship and climate policies in Sub-Sahara Africa. Three empirical papers examine climate policies in Ghana, Uganda, and Rwanda.
Stepping down the ladder: The unintended impacts of fossil fuel subsidy removal in a developing country
Jann Lay | GIGA | Hamburg