This study develops a methodology to assess the distributional effects of environmental policy instru-ments and measures. This method takes into consideration the economic as well as social and envi-ronmental effects. As a first step, the state of the art of the conceptualization of distributional effects was resumed. This overview combines the state of the art in research as well as the current practice of policy impact assessment and the guidelines in this context. Based on this theoretical overview, the authors developed a method to analyze distributional effects. This analysis consists of three main steps: 1) scoping phase, 2) relevance test, 3) in-depth analysis. The result chain analysis constitutes the basis of the scoping phase to identify possible direct and indirect effects of a policy. For the effects that were identified as relevant, an in-depth analysis is undertaken. The first step of this analysis is an assessment of the distributional effects of the status quo. The analysis of the current state serves as a “business as usual” scenario, which can be used for a comparison with the suggested new policy in-strument. First, the in-depth analysis for both, the analysis of the status quo as well as the assessment of the policy instrument, consists of an analysis of the current state of the art based on a literature re-view. Secondly, the economic effects of the instrument are simulated with the micro-economic model IZAΨMOD. This method was applied in five case studies. The instruments examined are: 1) Abolishment of the commuting allowance, 2) A revision of the speed limits on highways, country roads, and in built-up areas, 3) Incentives for promoting energy-focused building refurbishment, 4) A replacement program for cooling appliances in combination with a counselling programme on household energy saving, and 5) a modification of the taxation of the private use of company cars.