| Popis: |
Negative emission technologies are attracting the interest of investors in the race to make them effective and profitable. When deployed at scale, negative emissions will need to be financed through carbon tax revenues or issuing other taxes. Financing negative emissions could thus reduce the fiscal resources needed for a socially inclusive transition. Moreover, if negative emissions are privately owned their profits will disproportionally benefit investors and equity holders. We quantify the inequality repercussions of negative emission through an integrated assessment model which features within-country income heterogeneity and direct air capture of CO2. We find that negative emissions technologies deployed by private actors contribute to more than half of the increase in income inequality observed in a 1.5°C scenario. The effects are concentrated around the time of net-zero and are higher in scenarios with carbon budget overshoot. We attribute regional variations to two main mechanisms, the revenue drying and private ownerships effects of negative emissions. |
