As the Netherlands transitions to climate-neutral energy systems in the future, costs are set to soar. In the period through to 2050 we estimate that costs will be around € 20 billion per annum on average: a combination of the cost of reducing carbon emissions and government taxes on these emissions. Costs will rise from € 5 billion in the current situation to a little less than € 40 billion in 2050. As climate policy is configured today, low-income households spend a little over 5% of their expendable budget on climate-policy-related costs. This is around 3.5 times as much as high-income households. If these costs continue to be allocated according to today’s climate policy configuration, low-income households will eventually be spending over 17% of their expendable income on the costs of climate policy – an unacceptable burden for such households. To avoid this situation there will need to be a change in the set-up of climate policy.
An equitable form of climate policy could comprise the following elements:
As a follow-up study, it was investigated Who gains from climate policy?
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