We develop a model of optimal carbon taxation and redistribution taking into account horizontal equity concerns by considering heterogeneous energy efficiencies. By deriving first- and second-best rules for policy instruments including carbon taxes, transfers and energy subsidies, we then...

Germany is struggling to meet its 2020 greenhouse gas (GHG) emission and climate goals. Against this background, we analyze the current draft National Energy and Climate Plan (NECP) that sets out how Germany aims to achieve its national and European climate goals by 2030. We introduce the...

This paper studies the role of green research and development (R&D) subsidies under different environmental policies. Using a stylized equilibrium model calibrated to the European electricity sector, I analyze the effects of R&D subsidies under (1) an emission tax, (2) an emission cap, and (3)...

In this paper, we acknowledge that the mitigation of and adaptation to climate change have differential fiscal impacts. Whereas mitigation typically raises fiscal revenues, adaptation is costly to the taxpayer and to a greater extent the more distortionary the tax system is. In an OLG model with...

Germany has set national greenhouse emissions targets of a 65 percent reduction below 1990 levels by 2030 and net zero emissions by 2045, along with various sectoral emissions goals. To achieve these targets, the government has introduced multi-pronged policy measures, including a national...

An argument sometimes used to support renewable energy is that it may contribute to job creation. On the other hand, these technologies often face local opposition. On the case of Denmark, the country with the longest experience with wind power, the authors examine whether the installation of...

This volume was prepared by Julian Dieler while he was working with the Center for Energy, Climate and exhaustible Resources at the Ifo Institute for Economic Research. At the latest since the adoption of the Kyoto Protocol in 1997 climate policies are permanently on the international policy...

Der Klimawandel ist ein globales Phänomen. Auf Grundlage des neusten Sachstandsberichts des IPCC ist mit einem Anstieg der Erdtemperatur um 2,5 °C bis 3 °C bis zum Jahr 2100 zu rechnen, verursacht durch die bisherige Klimapolitik der großen Emittenten. Nach einer vom...

Im Jahr 2000 verabschiedete die rot-grüne Koalition das Erneuerbare-Energien-Gesetz (EEG) und betrachtete Deutschland damit als internationalen Vorreiter im Bereich der erneuerbaren Energien. Im März 2024 initiierte die Ampelkoalition das Förderprogramm Klimaschutzverträge und sah darin...

With the rise in the carbon price since the beginning of the year, the carbon dividend is once again a hot topic. Hopes are high that an imminent carbon dividend will ensure social equity and create more public support for climate policy. But are these expectations realistic or is this...