Previous international climate change agreements have primarily been driven by states, such as the UN Conference on Environment and Development in Rio de Janeiro in 1992, followed by the Kyoto Protocol in 1997 and the Paris Agreement in 2015. Perhaps due to the national focus of these...

Das Ziel der Bundesregierung ist es laut Koalitionsvertrag, "die Erderwärmung auf maximal zwei Grad Celsius zu begrenzen und Deutschlands Vorreiterrolle beim Klimaschutz beizubehalten". Zum Erreichen dieses Ziels sollen die deutschen Treibhausgasemissionen bis zum Jahr 2020 um 40 Prozent...

This paper explores whether governments can ban carbon-intensive materials through product carbon requirements. By setting near-zero emission limits for the production of materials to be sold within a jurisdiction, governments would accelerate the phase out of carbon-intensive production...

As part of its Green Deal, the European Commission is considering the introduction of border carbon adjustments and alternative measures. The measures, which would primarily apply to basic materials like steel and cement, pursue a double objective: they are aimed at enhancing the effectiveness...

Carbon pricing decisions by governments are prone to time-inconsistency, which causes the private sector to underinvest in emission-reducing technologies. We show that incentives for decarbonization can be improved if complementing carbon pricing with carbon contracts for differences, where the...

In this paper we show that carbon pricing is subject to time-inconsistency and we investigate solutions to improve on the problem and restore the incentive for the private sector to invest in low-carbon innovation. We show that a superior price-investment equilibrium can be sustained in the...