Research Report

Income-related residential segregation in Sweden has increased the past few decades. However, this increase is not the result of a reduced redistribution in the form of taxes and transfers. This is shown by economist Che-Yuan Liang in the SNS report “Income Inequality and Residential Segregation.” Liang finds that individuals with a low pre-tax income to a greater extent tend to reside in certain residential areas.

The Swedish manufacturing sector has reduced its carbon dioxide emissions by 31 percent since 1990. About two-thirds of this reduction is the result of technical change and one-third is due to an increase in the share of less carbon dioxide emitting segments of the sector. This is shown in a new SNS report by economists Gustav Martinsson and Per Strömberg. According to their analyses, it is the marginal cost of carbon dioxide emissions that determines whether it is profitable for firms to invest in climate change adaptation, not the size of the tax payments.