International environmental agreements have been and are negotiated to facilitate mitigation efforts on climate change. To avoid severe impacts, global cooperation is required as the reduction of greenhouse gas emissions represents a global public good. However, free-riding incentives impede the...

The ClimWood2030 study, commissioned by DG CLIMA of the European Commission, quantifies the five ways in which the EU forest sector contributes to climate change mitigation: carbon sequestration and storage in EU forests, carbon storage in harvested wood products in the EU, substitution of wood...

Climate policy needs to set incentives for actors who face imperfect, distorted markets and large uncertainties about the costs and benefits of abatement. Investors price uncertain assets according to their expected return and risk (carbon beta). We study carbon pricing and financial incentives...

Carbon pricing has now been implemented as a key policy instrument for climate change mitigation in many countries globally. However, existing systems differ significantly in design with regard to stringency, coverage and the use of the revenues collected through the system. In this literature...