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June 19, 2026Journal of Environmental Economics and ManagementOpen Access

The heterogeneous effects of climate policy on households: Evidence from 88 countries

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Authors

LMLeonard MissbachJSJan Christoph Steckel

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Overview

Analysis reveals how climate policy influences household costs, highlighting the need for tailored compensation strategies.

Key Points

  • This research aims to examine how climate policy impacts household carbon intensity of consumption across different contexts.
  • Constructed a dataset with carbon intensity information from 1.7 million households in 88 countries.
  • Analyzed horizontal and vertical differences in the effects of climate policy.
  • Used supervised machine learning to predict carbon intensity based on household characteristics.
  • Identified larger horizontal differences in carbon intensity effects than vertical differences.
  • Found household income as an insufficient predictor for additional climate policy costs, improving model accuracy with more household data.
  • Recognized ten distinct clusters of countries with varying climate policy cost distributions and predictors.

Cite This Study

Missbach et al. (2026) studied this question.

synapsesocial.com/papers/6a34df2365a5b0777af2e5behttps://doi.org/10.1016/j.jeem.2026.103382
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