The article explores how different climate policies affect households in 11 European countries. By combining two models, the researchers found that giving emission permits to certain industries can lead to more regressive impacts than auctioning them. This is because it increases income for some households, reduces tax revenue for low-income households, and raises prices for everyone. However, redistributing auction revenues equally can make climate policy fairer. Adjusting social benefits based on price changes helps, but more measures are needed to help vulnerable households.