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Paper short abstract:

we build a database that collects data on carbon pricing and fossil fuel subsidy reform cases to understand how to implement such critical climate policies. We explore how the use of social protection have made such reforms politically feasible and socially acceptable.

Paper long abstract:

In current times of uncertainty and crisis, social protection systems and their budgets are in jeopardy. On one side, austerity policies and lack of fiscal space can limit social protection funding. On the other side, emergencies such as the energy and the climate crises put additional strains on social protection and may lead to maladaptation. But the current context and the focus on just transitions also offers opportunities, as climate change mitigation and improvements in social protection can go hand in hand. For example, ambitious climate action to substantially decrease carbon emissions until 2030, requires carbon pricing policies and fossil fuel subsidy reforms that create fiscal space. Such revenues could fund social protection programmes to support households with increased energy prices, thereby benefiting the “just transition” process.

A systematic analysis of social protection measures in climate policies is critical, as several governments plan carbon pricing and subsidy reforms to achieve climate targets. Particularly, vulnerable households require protection as well as promoting measures to deal with the impacts of mitigation policies in the coming years. We build a database that collects data on carbon pricing and fossil fuel subsidy reform cases. These reforms cases are identified through a systematic literature review and relevant datasets. For all reforms episodes, we collect process and context variables that influence the implementation. By means of statistical analysis, we aim to establish patterns in the use of social protection in carbon pricing and subsidy reforms, and how social protection policies depend on other political economy factors.