Assessing the economic impact of carbon pricing on single and childless households: A case of 28 European countries

• Global MRIO analysis reveals EU household carbon burdens, highlighting tabledisparities across household types • Single and childless households face disproportionate carbon pricing burdens, especially single-person households. • Essential consumption items such as housing fuel contribute significantly to the carbon burden of single and childless households. • The Average Per-Household Rebate and Renewable Energy Rebate scenario generates greater protection for single and childless households. Demographic transition and climate change are currently among the most significant global challenges. Carbon pricing is widely acknowledged as an effective policy tool for addressing climate change. Developed countries are witnessing trends towards childlessness and singleness; however, the impact of carbon pricing on these trends remains largely unknown. We examined the impact of carbon pricing on various household types across 28 European countries employing a multi-regional input-output model and evaluated whether these households could be compensated through a carbon revenue recovery program. Our research indicates that single and childless households incur a disproportionate burden rate of 2.02% among all households, especially in Eastern Europe (4.1%) and Southern Europe (1.91%). Furthermore, essential consumption items such as housing fuel contribute significantly to the carbon burden of single and childless households, accounting for approximately 38%-68% of their total carbon - related additional expenditure. The introduction of carbon revenues rebate strategies, particularly those focused on subsidizing renewable energy consumption. It appears promising in alleviating financial burdens on single and single-parent households, with 2.59% positive net impact in Eastern Europe and 4.91% positive net impact in Northern Europe. Targeted protection schemes are essential to prevent single and childless households from shouldering a disproportionate additional burden under carbon pricing policies.