Climate change poses severe threats to ecosystems and economies, primarily driven by greenhouse gas emissions from fossil fuels, deforestation, and industrial processes.

The research examines the economic and environmental impacts of climate change mitigation policies, focusing on carbon pricing, renewable energy subsidies, emission trading schemes, and regulatory standards.

Mitigation policies aim to reduce greenhouse gas concentrations, enhance renewable energy usage, and promote sustainable practices to slow global warming.

Key findings indicate a 0.45% reduction in CO2 emissions for each unit increase in carbon pricing, alongside a 3.5% increase in employment in the green sector linked to renewable energy subsidies.

Statistical outcomes reveal a significant negative relationship between carbon pricing and CO2 emissions, affirming the effectiveness of such policies.

The study highlights the need for equitable distribution of benefits from climate policies, as carbon pricing tends to favor high-income groups, while renewable energy subsidies support lower-income groups.

The study finds that carbon revenue recycling through equal per-capita transfers can significantly reduce inequality, especially in developing countries.

Without redistribution, climate policies compatible with the Paris Agreement are projected to moderately increase income inequality.

The analysis emphasizes the need for effective and just climate policies that consider the distributional impacts to gain broader public acceptance.

Emission trading schemes are projected to increase GDP by 1.2% over a decade, but carbon pricing disproportionately affects low-income households, necessitating compensatory policies.

Public support for carbon revenue redistribution varies, with stronger backing in middle-income countries compared to high-income nations.

The study stresses the importance of a balanced policy mix tailored to national contexts to optimize economic and environmental outcomes while addressing social equity concerns.