Topic Enviromental Markets

De-Fueling Externalities: How Tax Salience and Fuel Substitution Mediate Climate and Health Benefits

This paper provides a comprehensive evaluation of the world’s largest environmental tax reform. We compare carbon and air pollutant emissions of the German transport sector and synthetic counterfactuals following the 1999 eco-tax reform, and find average re- ductions in external damages of around 80 billion Euros. We further show that the eco-tax induced low-carbon innovation and document much stronger ...

The New European Carbon Border Adjustment Mechanism

In October 2023, the EU Carbon Border Adjustment Mechanism (CBAM), a part of the reform of the European Emissions Trading System (EU ETS), will come into effect. Currently, energy-intensive industries do not need to purchase all of the necessary EU ETS allowances on the market to remain globally competitive, as the remaining allowances are freely allocated to them. The CBAM plans to gradually replace ...

Facilitating the Transport and Heating Transition: Strengthen Carbon Pricing, Introduce a Climate Dividend, and Reduce Adaptation Costs

Despite the easing of prices on the energy markets, private households continue to be burdened by elevated prices. The planned increase the planned increase in the carbon price for transport and heating will raise the burden on private households even further. These additional costs are unequally distributed and have a regressive effect, as poor households must spend much more relative to their net ...

Toward a Systemic Approach to Energy Transformation in Algeria

This paper examines the drivers of Algeria's energy transformation as well as the cross-cutting issues and challenges in the transformation process. It suggests a framework that accelerates sustainable transformation based on the ideologies of systemic reasoning. Interviews were conducted with 20 energy experts in Algeria, along with a content analysis of policy documents, reports, and previous studies. ...

The Energy-Price Channel of (European) Monetary Policy

This study examines whether central banks can combat inflation that is caused by rising energy prices. By using a high-frequency event study and a Structural Vector Autoregression, we find evidence that the European Central Bank (ECB) and the Federal Reserve (Fed) are capable of doing so by affecting domestic and global energy prices. This “energy-price channel” of monetary policy plays an important ...

Reducing Energy System Model Distortions from Unintended Storage Cycling through Variable Costs

Energy system models are used for policy decisions and technology designs. If not carefully used, models give implausible outputs and mislead decision-making. One implausible effect is “unintended storage cycling”, which is observable as simultaneous storage charging and discharging. Methods to remove such misleading effects exist, but are computationally inefficient and sometimes ineffective. Through ...

Kazakhstan: Decarbonisation Pathways towards a Net Zero Future by 2060 - The Opportunities and Challenges ahead: Final Report

Does Green Public Procurement Trigger Environmental Innovations?

Green public procurement has gained high political priority and is argued to be an effective demand-side policy to trigger environmental innovations. However, the empirical evidence on its innovation impact is limited. We construct a novel firm-level dataset to investigate the effect of winning public procurement tenders with additional environmental award criteria on firms’ introduction of environmental ...

Decarbonisation of the Energy System

Our analysis highlights that the current national energy and climate plans (NECPs) of EU countries are insufficient to achieve a cost-efficient pathway to EU-wide climate neutrality by 2050.

Chances and Barriers for Germany’s Low Carbon Transition: Quantifying Uncertainties in Key Influential Factors

With the energy sector being one of the largest sources of global greenhouse-gas emissions, a swift change in the ways of energy generation and consumption is needed for a fulfilment of climate goals. But while the existence of global warming and the resulting need for action are widely agreed upon, there is a lot of discussion around the concrete measures and their timeline. A major cause of this ...