Climate change and social inequality: how does climate change impact on inequality?

Social inequality plays a critical part in determining an inclusive pathway towards decarbonisation. Intraregional social transfers can reduce the burden of climate damage on low-income vulnerable groups while interregional transfers fail to do so. A case study showed that the greenhouse gas (GHG) emissions of high-income households in France were 2.6 times higher than that of low-income households. Yet, the latter devoted 12% of their income to pay a tax of 100 euros per ton of CO2 emitted compared to only 4% for the richest households.