Given that the carbon price in the EU Emissions Trading System is only around 5€/tCO2 while consensus about a more … stringent EU climate policy is very unlikely in the near future, we explore the potential scope and optimal design of additional … national climate policies in the current EU policy framework. In particular, we suggest to implement a type of carbon price …

) emissions. However, there are still concerns about its economic viability, especially if the risk of leakage in the storage site … investment plan ignoring uncertainty would suggest. We also show under reasonable parameter assumptions that the risk for … investing in CO2 storage is dominated by the uncertain development of carbon prices, whereas the risk of carbon leakage has …