Distributional Impacts of the EU ETS2 on Households: Evidence from Southern Europe

This paper investigates the distributional consequences of extending the EU Emissions Trading System to cover buildings and road transport (ETS2). Using household expenditure microdata combined with ERA5-Land climate data, I construct a composite vulnerability index that captures both economic exposure to carbon pricing and climate-related energy needs across Andalusian provinces.

Recommended citation: Moreno-López, M. (2025). "Distributional Impacts of the EU ETS2 on Households: Evidence from Southern Europe." Work in progress.