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Social sustainability in the decarbonized welfare state: social policy as a buffer against poverty related to environmental taxes

Abstract:
Decarbonization, environmental protection, and sustainable development are more topical than ever. Despite long-standing debates about the regressive profile of environmental taxes, the welfare state’s role in buffering adverse distributive impacts of climate policy is largely unexplored. We examine if social policy shields households from falling into poverty due to environmental taxes tied to consumption. We specifically focus on the importance of income replacement in social insurance and social assistance. To enable detailed assessments of the distributive outcomes of environmental policy, we impute environmental taxes into the European Union Statistics on Income and Living Conditions (EU-SILC). Our comparative analysis of 26 European countries indicates that the welfare state protects households from relative income poverty due to environmental taxes. Moreover, comparisons between educational groups suggest that both social insurance and social assistance play different yet complementary roles in reducing socio-economic gradients in poverty related to environmental taxes.
Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1177/14680181231217659

Authors

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Institution:
University of Oxford
Division:
SSD
Department:
Social Policy & Intervention
Oxford college:
St Cross College
Role:
Author


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Funder identifier:
https://ror.org/03zttf063


Publisher:
SAGE Publications
Journal:
Global Social Policy More from this journal
Volume:
25
Issue:
1
Pages:
36-63
Publication date:
2023-12-27
DOI:
EISSN:
1741-2803
ISSN:
1468-0181


Language:
English
Keywords:
Pubs id:
1607639
Local pid:
pubs:1607639
Deposit date:
2025-06-13
ARK identifier:

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