CLIMATE-ACTION INEQUALITY AND HOUSEHOLD VULNERABILITY: EVIDENCE FROM LOW-CARBON TRANSITION POLICIES IN URBAN AND RURAL COMMUNITIES

Abstract

While climate-action policies can lower carbon emissions, they do not impact equally on households and communities. This paper explores the issue of climate-action inequality and vulnerability of households in relation to policies related to the low-carbon transition in the urban and rural context. The study examines the impacts of energy-price reform, transport costs associated with carbon emissions, clean-energy subsidies, and livelihood transition on households of varying income, settlement and institutional support. The outcomes show that low-income and rural households are more vulnerable due to their energy burden, less access to energy assistance programs, and less energy adaptive capacity and less transport options. Clean energy subsidies, access to public transport, and digital application systems are more effective for urban households, whereas fuel price fluctuations and the lack of infrastructure are more of a concern for rural households. The results also reveal the potential of an unintended increase in inequalities due to a lack of compensation mechanisms, participation in climate policies and targeted support systems. But the effects are greatly reduced when policy packages combine income-sensitive subsidies, rural energy access, affordable public transport, and locally designed adaptation programs. The paper calls for climate policies that are both environmentally sound and equitable, affordable and household protective in order to create a just low-carbon transition.