Economic literature generally favours market-based instruments for regulating environmental externalities since they ensure compliance at the least cost to society. Emission taxes have been increasingly introduced internationally, with the focus shifting to CO2 after the adoption of the Kyoto...

In view of the challenges posed by climate change and the increase in climate targets by 2030 in the EU, as well as Austria's goal of achieving climate neutrality by 2040, the question of effective climate policy instruments is gaining in importance. The pricing of CO2, for instance in the form...