Current policies in the road transport sector fail to deliver consistent and efficient incentives for greenhouse gas abatement (see companion article by Creutzig et al., 2010a). Market-based instruments such as cap-and-trade systems close this policy gap and are complementary to traditional...

Current policies in the road transport sector fail to deliver consistent and efficient incentives for greenhouse gas abatement (see companion article by Creutzig et al., in press). Market-based instruments such as cap-and-trade systems close this policy gap and complement traditional policies...

In this article the problem of credible commitment in carbon policy is discussed. Investors favour long-term predictability of the policy, but without any external enforcement mechanisms a commitment made by a government can be withdrawn, leading to scepticism and lack of credibility. This...

The central pillar of European climate policy, the European Emissions Trading System (EU ETS), is currently under scrutiny, as the allowance price is persistently low at around 5€/tCO2. The cap was met and emissions actually declined in recent years, ensuring the environmental effectiveness of...

Ergänzend zu den Beiträgen, die im ifo Schnelldienst Nr. 7/2007 zum Klimawandel veröffentlicht wurden, legen Ottmar Edenhofer, Christian Flachsland und Thomas Bruckner, Potsdam-Institut für Klimafolgenforschung, dar, welchen Beitrag Deutschland zur Lösung des Weltklimaproblems ihrer Meinung...

International emissions trading is widely seen as an indispensable policy pillar of climate change mitigation [Stern, N., 2007. The Economics of Climate Change. The Stern Review. Cambridge University Press, New York]. This article analyzes five different types of trading architectures,...

A framework was devised for policy-makers to assess direct bilateral cap-and-trade linkages. A systematic analysis of the economic, political and regulatory implications indicates potential benefits along with a number of potentially negative sideeffects. Theoretically, economic benefits are...

Um ein ambitioniertes Klimaschutzziel zu erreichen, muss die Nutzung der Atmosphäre als globales Gemeinschaftsgut begrenzt und die Nutzungsrechte neu verteilt werden. Dies hat weitreichenden Folgen: Zum einen werden die Besitzer fossiler Ressourcen einen großen Teil ihrer Ressourcenrente...

This paper analyses the optimal type and degree of commitment to a future climate policy when damage costs from climate change are uncertain. Taking uncertainty into account, it is shown within the framework of a sequential game between firms and a regulator that commitment to an emission...