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July 29, 2026Communications SustainabilityOpen Access

Road transport carbon pricing creates uneven burdens across Europe and requires targeted revenue recycling

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Authors

SMStefano MenegatSDSilvana DalmazzoneVFVito Frontuto

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Overview

Simulation of carbon pricing effects reveals burdens on households vary by income and region, suggesting targeted strategies are needed.

Key Points

  • This research aims to analyze how carbon pricing on road fuels affects households differently across Europe, focusing on income and regional disparities.
  • Simulated higher petrol and diesel prices using harmonized household budget data adjusted for fuel purchases.
  • Analyzed impacts across 23 European countries while considering income levels and transport options.
  • Compared burdens of increased fuel prices across income groups and regions.
  • In richer western countries, lower-income households face a larger relative burden from increased fuel prices.
  • In some eastern countries, poorer households experience less burden due to limited access to private transport.
  • Households with high dependence on cars or living in less accessible areas are more vulnerable to price increases.

Cite This Study

Menegat et al. (2026) studied this question.

synapsesocial.com/papers/6a69a26dc8da07d9defa5d48https://doi.org/10.1038/s44458-026-00129-4
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Also Consider

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  5. 5The impact of the EU-ETS2 on prices and welfare in the European Union2026 · 1 citations