Topic Climate Policy

Distributional Impacts of Carbon Pricing: A Meta-Analysis

Understanding the distributional impacts of market-based climate policies is crucial to design economically efficient climate change mitigation policies that are socially acceptable and avoid adverse impacts on the poor. Empirical studies that examine the distributional impacts of carbon pricing and fossil fuel subsidy reforms in different countries arrive at ambiguous results. To systematically determine ...

The EU ETS to 2030 and beyond: Adjusting the Cap in Light of the 1.5°C Target and Current Energy Policies

The Paris Agreement calls on countries to pursue efforts to limit global average temperature rise to 1.5°C. We derive a 2016–2050 emission budget for the EU Emissions Trading System (EU ETS) based on cost-effectiveness criteria aimed at achieving the 1.5°C target with a 50%–66% probability, and translate it into a cap reduction path. We show that, under current ETS parameters, the vast majority of ...

A Real Chance for Transatlantic Partnership on Climate Policy

Comparing Regulatory Designs for the Transmission of Offshore Wind Energy

Offshore wind plays an ever-increasing role for the global transition to renewable energy. For offshore wind energy to be successful, cost-effective transport of the produced electricity to shore is necessary. The development and operation of the offshore transmission asset is costly and regulated differently across the globe. In most countries, the TSO is responsible for the transmission and develops ...

Coase and Cap-and-Trade: Evidence on the Independence Property from the European Carbon Market

This paper tests the independence property under the Coase Theorem in a large multinational cap-and-trade scheme for greenhouse gas emissions, the EU Emissions Trading System (EU ETS). I analyze whether emissions of power producers regulated under the EU ETS are independent from allowance allocations, leveraging a change in allocation policy for a difference-in-differences strategy. The evidence suggests ...

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 ...

Finance Meets Sustainability: A New Hope? Editorial

Sustainable Finance – Divestment as a Tool to Reach the SDGs?

Dieses Papier bereitet die gängige Literatur zum Thema „Divestment“ auf. Über eine lange Zeit konnten viele Firmen, die für den Einsatz umweltschädlicher Technologien bekannt waren, lange Zeit davon ausgehen, dass sie nicht über den Finanzmarkt sanktioniert werden. Heutzutage scheint Divestment eine verbreitete Strategie zu sein, um umweltschädliche Unternehmensaktivitäten zu sanktionieren. Grundlegende ...

A Concept for Measuring Real Estate Sustainability from the Investors’ Perspective

Obwohl die Nachfrage nach nachhaltigen Anlageprodukten steigt und die Regulierung zur Offenlegung von Nachhaltigkeitsaspekten zunimmt, mangelt es auf Seiten der Anleger:innen an Informationen über die Nachhaltigkeit der angebotenen Anlageprodukte. Auch wenn in der Literatur hunderte von ESG-Indikatoren für Standard-Investmentprodukte zur Verfügung stehen, gibt es bisher keinen ganzheitlichen Ansatz ...

Sustainable Financial Literacy and Preferences for Sustainable Investments among Young Adults

In diesem Beitrag verwenden wir ein Auswahlexperiment bzgl. der Auswahl von Aktienfonds, um die Präferenzen junger Erwachsener für nachhaltige Anlagen im Vergleich zu konventionellen Investmentfonds zu schätzen. Unsere Ergebnisse deuten darauf hin, dass der traditionelle Trade-Off zwischen dem Risiko und der Rendite von Aktienfonds auch bei der Auswahl nachhaltiger Investmentfonds Bestand hat. Der ...