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Climate Policy and Inequality in Urban Areas: Beyond Incomes

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dc.contributor.authorLiotta, Charlotte
dc.contributor.authorViguié, Vincent
dc.contributor.authorSelod, Harris
dc.contributor.authorHallegatte, Stephane
dc.contributor.authorAvner, Paolo
dc.date.accessioned2022-09-20T20:53:07Z
dc.date.available2022-09-20T20:53:07Z
dc.date.issued2022-09
dc.description.abstractOpposition to climate policies seems to arise, at least partly, from their effects on inequality. However, so far, the impact of climate policies on inequality has mainly been studied through the lens of income inequality, and their spatial dimension is poorly understood. This paper, using Cape Town, South Africa, as a case study, investigates the impact of a fuel tax on both spatial and income inequalities. It uses a model derived from the standard urban economics land use model, accounting for four income classes and four housing types. This modeling framework allows decomposing the impacts of the tax by income class, housing type, and housing location. The analysis also decomposes the impacts of the tax over different timeframes, assuming that households and developers progressively adapt to the tax. The findings reveal strong evidence that in the short term, there are both income and spatial inequalities, with households being more negatively impacted by the fuel tax if they earn low incomes or live far from employment centers. In the medium and long term, these inequalities persist: the poorest households, living in informal settlements or subsidized housing, have few or no ways to adapt to changes in fuel prices by changing housing type, adjusting their dwelling sizes or locations, or shifting transportation modes. Low-income households living in formal housing also remain impacted by the tax over the long term due to complex effects driven by the competition with richer households on the housing market. Complementary policies promoting a functioning labor market that allows people to change jobs easily, affordable public transportation, or subsidies helping low-income households to rent houses closer to employment centers will be key to enable the social acceptability of climate policies.en
dc.identifierhttp://documents.worldbank.org/curated/en/099435009192218701/IDU064cb89c9021ad048e20bd5a0c2f0100dbc7e
dc.identifier.doi10.1596/1813-9450-10185
dc.identifier.urihttps://hdl.handle.net/10986/38040
dc.languageEnglish
dc.language.isoen
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Papers;10185
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectINEQUALITY
dc.subjectFUEL TAX 
dc.subjectSPATIAL INEQUALITY
dc.subjectINCOME INEQUALITY
dc.subjectAFFORDABLE URBAN HOUSING
dc.subjectCLIMATE POLICY REFORM
dc.subjectURBAN ECONOMICS
dc.subjectLAND USE
dc.subjectTRANSPORT INTEGRATED MODEL
dc.subjectEMISSION MITIGATION
dc.subjectREDISTRIBUTIVE IMPACTS
dc.subjectHOUSING MARKETS
dc.subjectTRANSPORTATION CLIMATE POLICY
dc.titleClimate Policy and Inequality in Urban Areasen
dc.title.subtitleBeyond Incomesen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleClimate Policy and Inequality in Urban Areas: Beyond Incomes
okr.date.disclosure2022-09-19
okr.date.doiregistration2025-04-10T10:32:02.285188Z
okr.date.lastmodified2022-09-19T00:00:00Zen
okr.doctypePolicy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099435009192218701/IDU064cb89c9021ad048e20bd5a0c2f0100dbc7e
okr.guid099435009192218701
okr.identifier.doi10.1596/1813-9450-10185
okr.identifier.externaldocumentumIDU-64cb89c9-21ad-48e2-bd5a-c2f0100dbc7e
okr.identifier.internaldocumentum33900734
okr.identifier.reportWPS10185
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099435009192218701/pdf/IDU064cb89c9021ad048e20bd5a0c2f0100dbc7e.pdfen
okr.region.countrySouth Africa
okr.topicPublic Sector Development::Climate Change Policy and Regulation
okr.topicUrban Development::Transport in Urban Areas
okr.topicUrban Development::Urban Housing
okr.topicRural Development::Rural Roads & Transport
okr.topicUrban Development::Rural Urban Linkages
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