Understanding the Linkages between Climate Change and Inequality in the United States

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Economic Policy Review

Understanding the Linkages between Climate Change and Inequality in the United States

Volume 29, Number 1
June 2023

JEL classification: D63, Q54, Q58

Authors: Ruchi Avtar, Kristian S. Blickle, Rajashri Chakrabarti, Janavi Janakiraman, and Maxim L. Pinkovskiy

The authors conduct a review of the existing academic literature to outline possible links between climate change and inequality in the United States. First, researchers have shown that the impact of both physical and transition risks may be uneven across location, income, race, and age. This is driven by a region’s geography as well as its ability to adapt. Second, measures that individuals and governments take to adapt to climate change and to transition to lower emissions risk increasing inequality. Finally, while federal aid and insurance coverage can mitigate the direct impact of physical risks, their structure may—inadvertently—sustain and entrench existing inequalities. The authors conclude by outlining some directions for future research on the nexus between inequality and climate change.

Available only in PDF

Author Disclosure Statement(s)

Ruchi Avtar
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.

Kristian S. Blickle
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

Rajashri Chakrabarti
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.

Janavi Janakiraman
The author declares that she has no relevant or material financial interests that relate to the research described in this paper.

Maxim L. Pinkovskiy
The author declares that he has no relevant or material financial interests that relate to the research described in this paper.

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