This report examines the distributional impacts of the UK’s net-zero pathways on fuel and transport poverty, with particular attention to vulnerable households. Using macroeconomic modeling, it identifies how different policy approaches affect household finances and discusses strategies for equitable decarbonization. The findings highlight that low-income households face increased risks of poverty due to rising energy costs and limited transport options, emphasizing the need for policies that alleviate these pressures while progressing toward net-zero emissions. The study underscores the importance of balancing climate goals with social equity to ensure a just transition.
Context and quantification
About the policy
Area
Energy, Justice
Instrument
Tax incentives, Subsidies
Intervention
Fuel poverty reduction policies
Cost
Government funds
Funding
National policy bodies
Institutional arrangement
None
Impacts
Stakeholders involved
None
Stakeholders impacted
Low-income households
Wellbeing
Income, Health
Justice consideration
Recognitional
Metadata
| Lead author name | Ornella Dellaccio |
|---|---|
| Lead author gender | Female |
| Lead author institution | Cambridge Econometrics |
| Lead author institution location | United Kingdom |
| Peer reviewed? | true |
| Grey literature? | false |
| Type of paper | Research article |
| Volume | None |
| Publication year | 2022 |
| URL / DOI | None |
| Sufficiency mentioned? | true |