Facilitating socially responsible carbon pricing policies: the Carbon Pricing Incidence Calculator (CPIC)

CPIC allows to explore the distributional consequences of carbon pricing and various compensation measures in an accessible manner for (currently) 87 countries. The tool calculates the additional costs to households after a carbon price is introduced, i.e. the carbon pricing incidence. We have designed CPIC to provide insights for a broader policy dialogue on design and implementation of carbon pricing schemes. We aim to target a broad audience of societal stakeholders, including policy makers, civil society and media. Supplementing policy analysis, CPIC can help to address socially unbalanced outcomes of carbon pricing.

Use CPIC to dive into different scenarios and stylized redistribution mechanisms, and compare the distribution of additional costs in or between different groups of the population in a country.