Options for a per-capita rebate of revenues from CO2 pricing

The project looks at different options of a per-capita rebate of revenues from CO2 pricing in Germany. The German government has decided to introduce a national emissions trading system for the heat and transport sectors in its Climate Action Programme 2030. Such a CO2 pricing implies distributional challenges, since lower-income and middle-income households are more exposed to CO2 prices relative to their total income than more wealthy households. Returning revenues through an equal lump-sum rebate would reduce such distributional consequences, while keeping the incentives of the CO2 pricing.
A central challenge related to the introduction of a per-capita rebate it the identification of the recipients. In the project report the relative advantages and disadvantes of different options related to the use of the German tax identification number or the health insurance are being discussed.