Topic Climate Policy

Energy Transition Metals

The energy transition requires substantial amounts of metals such as copper, nickel, cobalt and lithium. Are these metals a key bottleneck? We identify metal-specific demand shocks, estimate supply elasticities and pin down the price impact of the energy transition in a structural scenario analysis. Metal prices would reach historical peaks for an unprecedented, sustained period in a net-zero emissions ...

ECB Policy Facilitating Corporate Financing in the Green Bond Market

The green bond market has grown strongly in recent years, especially in the euro area. With regard to the European Union’s climate targets, it is likely that the demand for green bonds—bonds that specifically support sustainable projects— will continue to increase in the future. The European Central Bank (ECB) is buying green bonds as well and is planning to reorient its strategy towards more sustainability. ...

A Green COVID-19 Recovery of the EU Basic Materials Sector: Identifying Potentials, Barriers and Policy Solutions

This paper explores climate-friendly projects that could be part of the COVID-19 recovery while jump-starting the transition of the European basic materials industry. Findings from a literature review on technology options in advanced development stages for climate-friendly production, enhanced sorting, and recycling of steel, cement, aluminium, and plastics, are combined with insights from interviews ...

Structural Supply Side Management in EU ETS: Reviewing the Market Stability Reserve

The review of the market stability reserve (MSR) is one of the key elements of the forthcoming reform of the EU ETS. This report assesses if the MSR is designed in a way that it can fulfil its pur-pose to provide sufficient supply-side flexibility under the cap. The authors discuss different op-tions for adapting and complementing the MSR parameters, such as the intake rate and thresholds for interventions, ...

An Open Tool for Creating Battery-Electric Vehicle Time Series from Empirical Data, emobpy

There is substantial research interest in how future fleets of battery-electric vehicles will interact with the power sector. Various types of energy models are used for respective analyses. They depend on meaningful input parameters, in particular time series of vehicle mobility, driving electricity consumption, grid availability, or grid electricity demand. As the availability of such data is highly ...

Effectiveness, Spillovers, and Well-Being Effects of Driving Restriction Policies

We study the effectiveness, spillovers, and well-being effects of low emission zones in Germany, an emission-intensity-based driving restriction rapidly growing in popularity. Using regression discontinuity and group-time difference-in-differences designs, we show that previous estimates of the policy’s impact on traffic-related air pollution significantly underestimate its effectiveness. We provide ...

The Effect of Restructuring Electricity Distribution Systems on Firms' Persistent and Transient Efficiency

We evaluate the efficiency of electricity distribution operators (DSOs) as providers of local public infrastructure. In particular, we consider two types of efficiency, i.e., short-term (transient) and long-term (persistent). We apply the recently developed four-component stochastic frontier model, which allows identifying determinants of the two types of efficiency, after controlling for firm heterogeneity ...

EEAG Revision Support Study: Final Report

Closing the Green Deal for Industry: What Design of the Carbon Border Adjustment Mechanism Ensures an Inclusive Transition to Climate Neutrality?

International Dimensions of Industry Decarbonization: Elements of International Cooperation Approaches