Carbon Taxation and the Geography of Equity: Evidence from Industrial Emissions, Factory Activity, and Income Disparities in Thailand

Discussion

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Summary

• This paper investigates how carbon tax interacts with the geography of equity by examining the spatial distribution of industrial emissions, factory activity, and income disparities across Thai provinces
• Data: geocoded factory dataset combined with high-resolution emissions and household income data
• Key results: trade-off between national income redistribution and localized environmental justice
• industrial CO₂ emissions are highly spatially concentrated, closely aligned with heavy-industry presence, and inversely correlated with income vulnerability.
• national carbon tax models with targeted low-income transfers reduce income inequality but weaken environmental compensation for high-exposure provinces.
• Sub-national models strongly align fiscal benefits with pollution exposure but do little to reduce overall inequality.

INTERNAL. This information is accessible to ADB Management and Staff. It may be shared outside ADB with appropriate permission.