How to make a carbon tax reform progressive: The role of subsistence consumption

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Perceived fairness and public acceptability of carbon pricing: a review of the literature (2019, background): “Moreover, since low-income households tend to spend less, in absolute terms, on energy consumption than high-income households, then the former will receive more through the monetary transfer than the cost increase they suffer (Chiroleu-Assouline and Fodha, 2014; Klenert and Mattauch, 2016).”
Distributional effects of carbon taxation (2016, background): “Therefore, some researchers propose that the distributional concerns should not necessarily prevent carbon mitigation [40,73] because the policy design—especially the use of revenue—would have a strong influence on the distributional impacts of the tax [41] and there are ample opportunities for the ”