Topic Climate Policy

Climate Policy Summer School

The PhD Summer School on Economic Foundations for Energy and Climate Policies is part of a series organised jointly by a consortium of institutions including DIW Berlin, Technical University Berlin, Université Libre de Bruxelles, EUI-Florence School of Regulation, University College London, Universidad Carlos III de Madrid, and Universidad Autónoma de Madrid. This year, DIW Berlin, TU Berlin, and...

Non-monetary factors influence heating energy consumption much more than price increases do in the short term

Predictions for the use of nuclear fusion

Unilateral Carbon Pricing and Heterogeneous Firms

Unilateral carbon pricing raises concerns about carbon leakage, prompting calls for protecting exposed industries through either free allocations of emission permits or a carbon border adjustment mechanism. This paper develops a quantitative general equilibrium trade model to evaluate the effects of these unilateral carbon pricing instruments. The model incorporates input-output linkages and firm...

WinIt – Scientific Analyses of Industrial Transformation

The project deals with scientific questions on industrial transformation towards a climate-neutral and resilient economy, covering the entire breadth of this topic. Questions on industrial transformation in Germany and beyond are formulated with a view to the EU's energy and climate policy instruments. The approach applies scientific methods throughout.  The background to the project is the very...

Five Essays in Energy System Analysis: Exploring the Dunkelflaute and Unintended Storage Cycling

Die Umstellung von fossilen Brennstoffen auf erneuerbare Energien ist essenziell, um Klimaneutralität zu erreichen. Da das Potenzial steuerbarer erneuerbarer Energien in den meisten Ländern begrenzt ist, werden zukünftige Energiesysteme voraussichtlich überwiegend mit Strom aus fluktuierender Wind- und Solarenergie betrieben. Der Ausgleich zwischen Stromnachfrage und wetterabhängiger, variabler Erzeugung ...

Trade Effects of Direct and Indirect Carbon Pricing Policies

This study examines how policies affecting the cost of using fossil fuels in production influence comparative advantage in the industrial sector. Firstly, we use a fixed-effects gravity model to estimate the export capabilities that determine comparative advantage. Subsequently, using data on direct (carbon taxes, ETS permit prices) and indirect (fossil fuel excise taxes and subsidies) carbon pricing ...

Ensuring Low-Emission Electricity Purchasing Requires a Broader Systems Perspective

Introducing electricity purchase conditions in renewable fuel regulations and carbon accounting is a controversial issue in the US and Europe. We argue that their impact must be assessed considering demand flexibility, local grid conditions, and overlapping policy instruments such as emissions trading schemes and renewable portfolio standards. The introduction of more stringent requirements has a significant ...

Non-monetary Factors Were an Important Driver of Residential Energy Savings during the Energy Crisis

The Russian invasion of Ukraine in 2022 triggered an energy crisis in Germany, with consumer energy prices skyrocketing over the course of the year. Due to concerns about gas shortages, various programs aimed at reducing consumption were set up and the German Federal Government and numerous organizations appealed to consumers to save as much energy as possible. This Weekly Report investigates how much ...

Taxonomy Disclosure in the EU: A Useful Framework, Despite Current Challenges

The EU Taxonomy is a classification system for sustainable economic activities and a framework for various regulatory initiatives. Its primary objectives are to enhance transparency, to reduce greenwashing and ultimately to redirect capital toward more sustainable activities. However, since its introduction, market participants have raised concerns about whether the benefits justify the costs. This ...