Abstract Policymakers frequently voice concerns that carbon pricing could impair economic development in the short run, especially in low-income countries such as Uganda. Using a consumer demand system for energy and food items, we assess how households’ welfare, and demand for food and energy, would respond to a carbon price of USD40/tCO2. We find welfare losses of 0.2–12 per cent of household expenditure on food and fuel, due to the carbon price. Average demand for electricity and kerosene decline by 11 and 20 per cent respectively, while firewood demand rises by 10 per cent on average. We observe shifts within food consumption baskets, with declines in the demand for meat &amp; fish, and vegetables, alongside an increase in cereal consumption. Household nutrition is adversely impacted, with declines in protein and micronutrient intake across the population. Complementary social protection policies such as cash transfers are therefore required to ease adverse effects on economic development in Uganda.

Raavi Aggarwal

Sinem H. Ayhan

Michael Jakob

Jan Christoph Steckel

Environment and Development Economics

Environment and Development Economics is positioned at the intersection of environmental, resource and development economics. The Editor and Associate Editors, supported by a distinguished panel of advisors from around the world, aim to encourage submissions from researchers in the field in both developed and developing countries. The Journal is divided into two main sections, Theory and Applications, which includes regular academic papers and Policy Options, which includes papers that may be of interest to the wider policy community. Environment and Development Economics also publishes occasional Policy Fora (discussions based on a focal paper). From time to time the journal publishes special issues based on a particular theme.

Environment and Development Economics is situated at the intersection of environmental, resource, and development economics. The Editor and Associate Editors, supported by a distinguished panel of advisors from around the world, aim to encourage submissions from researchers in both developed and developing countries. The journal is divided into two main sections: Theory and Applications, which includes regular academic papers, and Policy Options, which features papers that may be of interest to the broader policy community. Environment and Development Economics also publishes occasional Policy Fora, which are discussions based on a focal paper. From time to time, the journal publishes special issues centered around a particular theme.

《Environment and Development Economics》期刊位于环境经济学、资源经济学和发展经济学的交汇处。编辑和副编辑在来自世界各地的杰出顾问的支持下，旨在鼓励来自发达国家和发展中国家的研究人员提交论文。期刊分为两个主要部分：理论与应用，包括常规学术论文；政策选项，包括可能对更广泛政策社区感兴趣的论文。《Environment and Development Economics》还不定期发布政策论坛（基于焦点论文的讨论）。此外，期刊还会不时发布基于特定主题的特刊。

Category	Quartile
经济学	4
经济学, 经济学	4
经济学, 环境研究	4

Carbon pricing and household welfare: evidence from Uganda

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Journal Info

Category	Quartile
ENVIRONMENTAL STUDIES	3