Modelling of Distributive Effects

WP5 focuses on the distributive effects of various transformation pathways in Germany. As part of WP5, which facilitates detailed assessment of the various distributional impacts of environmental policy, a new micro simulation tool will be developed for Germany. The micro simulation model will be combined with a macroeconomic general equilibrium model in order that it captures distributive effects at both the macroeconomic and microeconomic level.

In WP5, different policy scenarios will be examined with respect to their impact on the wealth and welfare of private households in Germany. Aspects of vertical equity in taxation and in regard to the double dividend, as well as aspects of ecological effectiveness will be considered. The aim is to identify ambitious environmental and climate policy pathways, which are neutral in terms of a distributional incidence at the household level.