This research project studies the influence of inequality on an economy’s environmental impact and the implications of this influence for climate change mitigation policy. A key observation underlying this research project is that inequality influences a society's environmental impact through the effects of inequality on consumption: (1) inequality might induce increased positional consumption, and (2) low-income households tend to have higher emission intensities of consumption than high-income households. Not only could these mechanisms entail substantially different climate change policy conclusions, a realistic modelling of consumption dynamics is important given the growing emphasis on demand-side mitigation in the climate change literature. My approach consists of constructing, calibrating and simulating computable overlapping generation models. Controlling for inequality-consumption-emissions linkages, I compare the effects of environmental fiscal policy packages in a long-run general equilibrium setting with heterogeneous agents, and focus particularly on demand-side mitigation measures. I then proceed to examine one prominent proposal for climate justice - debt-financed intertemporal transfers: the intragenerational distributional consequences and the environmental impact of these potential distributional consequences have not yet been studied.