Since the signing of the 2030 Agenda for Sustainable Development by the United Nations Member States and the Yellow vest movement, it is clear that emission‐reducing policies should consider their distributional impacts to ensure a sustainable and equitable growth compatible with the Paris Agreement goals. To this end, the design of environmental and energy policies should be accompanied by an interdisciplinary analysis that includes potential effects on distinct groups of society (defined by income, age, or location), regions, and sectors. This work synthesizes common modeling frameworks used to assess technical, socio‐economic, and environmental aspects in policy analysis and the recent progress to portray distributional impacts in each of them. Furthermore, the main indicators produced by each method are highlighted and a critical review pointing to gaps and limitations that could be addressed by future research is presented.
Written by Roland Cunha Montenegro, Panagiotis Fragkos, Audrey Helen Dobbins, Dorothea Schmid, Steve Pye and Ulrich Fahl.