Distributional Impact of Carbon Pricing in Central and Eastern Europe

realization time: 12.2021 - 09.2023

The project aims to help shape the EU climate and energy policy regarding the effects of the increasing carbon costs on economically vulnerable groups.
It focuses on four East-European EU member states (Bulgaria, Hungary, Poland, and Romania) – with higher-than-EU-average levels of fossil fuels dependence in their economic systems, and higher-than-EU-average energy poverty levels – while also drawing on the experience from the German Energiewende (ongoing transition by Germany to a low carbon, environmentally sound, reliable, and affordable energy supply).

The project will develop and use a methodology for research that combines an economy-wide quantitative assessment of the carbon costs’ impact by means of a dynamic general equilibrium model, coupled with a micro-simulation based on household budget surveys (HBS) data. The redistributive channels examined in the project are the price responses, the adjustment of consumer behaviour, and the labour market impacts (especially in the carbon-intensive sectors). Policy recommendations will be made for effective measures to mitigate the negative effects of carbon taxation, including redistributing the additional tax revenues to ensure social fairness and optimise social protection for the most vulnerable social groups.

The project will conduct public consultations on the key findings with relevant decision-makers at national and EU levels. The deployment will be coordinated with the Adelphi-led project „Facilitating socially just carbon pricing policies in CEE”.


This project is part of the European Climate Initiative (EUKI). EUKI is a project financing instrument by the Federal Ministry for Economic Affairs and Climate Action (BMWK). The EUKI competition for project ideas is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. It is the overarching goal of the EUKI to foster climate cooperation within the European Union (EU) in order to mitigate greenhouse gas emission

Jakub Sokołowski
Jan Frankowski
Joanna Mazurkiewicz
Marek Antosiewicz
Panel on the Social Climate Fund at the European Housing Day featuring Jakub Sokołowski
IBS contribution to the European Housing Day organised by Habitat for Humanity in Brussels.
Jakub Sokołowski at the 40th Conference of the American and International Association for Energy Economics in Chicago
Jakub Sokołowski from the Institute for Structural Research chaired a session on decarbonisation .
International Annual Conference on Energy Poverty (EPAH) in Warsaw
On 19-20 September 2023, the International Conference on Energy Poverty took place at the Palace of Culture and Science in Warsaw. Jakub Sokołowski, Jan Frankowski, Joanna Mazurkiewicz, and Aleksandra Prusak represented IBS at the Conference.
IBS Jakub Sokołowski
Central Eastern European Sustainable Energy Network conference ‘Responses to the energy and climate crisis’.
The theme of the Central Eastern European Sustainable Energy Network conference in Budapest was the energy and climate crisis and how cities and regions can counter this crisis.
CAN 2023
Jakub Sokołowski at the Climate Action Network – CAN Europe meeting.
The CAN meeting 'Realising climate ambition and just energy transition in Central Eastern Europe' in Brussels was organised as part of the EUKI initiative (Europäische Klimaschutzinitiative).
Jakub Sokołowski at the Forum C4E
Jakub Sokolowski presented research results at the C4E Forum
The C4E - Central & Eastern European Energy Efficiency Forum,23-25.05.2023, three-day meeting this year took place in Samorin, Slovakia. The C4E Forum is one of the most important events in the field of energy and environmental policy.
New Year’s climate research and policy workshop, i.e. IBS on energy transformation
During the New Year's workshop, the researchers of IBS presented the latest research findings on energy transformation to chosen stakeholders responsible for fostering and conducting climate policy in Poland.
IBS on just transition conference in Katowice
28-29 October 2022, Joanna Mazurkiewicz, Jakub Sokołowski and Jan Frankowski presented IBS research results at the conference „From the Grassroots to Policy and Back: Putting Just Transition to Practice” in Katowice.
The final conference of the COST ENGAGER research network in Budapest
Jakub Sokołowski and Jan Frankowski participated in a final meeting of COST ENGAGER Network Conference „Engaging with energy poverty in times of crisis” (11-13.04.2022).
Energy transition – a new project
In the new international project, we will analyse the effects of the increasing carbon costs in the EU on the economically vulnerable groups of final energy consumers in Bulgaria, Hungary, Poland, and Romania. The project is part of the European Climate Initiative (EUKI).
2023-05-24 Distributional effects of carbon pricing in Poland
authors:    /   /   / 
The report aims to indicate the potential effects of climate policy and point out mechanisms to reduce inequalities caused by increased energy prices. Based on the macroeconomic model and microsimulation, we present the effects of carbon pricing and its consequences for economic sectors and households ...
persons from IBS
Joanna Mazurkiewicz
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Jakub Sokołowski
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Marek Antosiewicz
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