Socially-balanced CO2 Pricing in the Transport and Building Sectors in Germany

To ensure social acceptability of CO2-pricing in Germany, UBA suggests a combination of equal per-capita transfers and additional specific measures for vulnerable households. As poorer households tend to pay larger shares for energy use with respect to their income, they are hit harder by costs resulting from carbon pricing. To tackle that issue, a differentiated policy mix is needed. Source: own illustration, German Environment Agency