Can a CO 2 Tax Be Socially Just? Analysis of the Social Distribution Effects of the German CO 2 Taxation.

Rising energy costs have led to increased discussion about the social impact of the energy transition in Germany in recent years. In 2021, a gradually increasing CO₂ tax was introduced. This paper analyzes the question of whether a CO₂ tax can be socially just. Using data analysis and desk research, correlations between income and energy consumption in Germany are shown. In a short analysis, it is investigated which additional burdens different types of private households have to expect in the coming years due to the introduction of CO₂ pricing on energy. In particular, the introduction of a per capita flat rate fed by CO₂ tax revenues could be a suitable way to reduce the burden on low-income households. [ABSTRACT FROM AUTHOR]