The inequality-emission dilemma : Predistribution vs. redistribution

Macro-economical and societal challengesPublicationsPublicationsResearch areaResearch FellowsTobias AngelComments Off on The inequality-emission dilemma : Predistribution vs. redistribution
Author(s) :
Tobias Angel, Alexandre Berthe, Valeria Costantini, Mariagrazia D’Angeli,
Published in Ecological Economics, volume 249, November 2026

Abstract

This study investigates the relationship between different types of within-country inequality reduction and CO2 emissions using panel data in 156 countries from 1995 to 2020. Using fixed effects panel and quantile regression techniques, we report estimates that indicate that predistribution (pre-tax inequality reduction) increases carbon emissions less than redistribution (post-tax inequality reduction measured as the difference between pre and post-tax inequality). Moreover, we differentiate between the effect of predistribution and redistribution on production-based and consumption-based emissions. Countries that produce more carbon-intensive products than they consume and low emitting countries face the highest trade-off between predistribution and decarbonization. By contrast, reduction in inequality through predistribution does not affect per capita consumption-based CO2 emissions among the highest emitting countries. These findings call for international cooperation and public policies aimed at a more equitable primary income distribution to achieve joint inequality and reduction of carbon emissions.

Keywords: Climate change, Inequality, Predistribution, Redistribution, Mitigation

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