To reach climate neutrality, carbon emissions from the production of basic materials need to be curtailed. When governments encourage this transition by adopting support measures, the measures must comply with the Agreement on Subsidies and Countervailing Measures. This article analyzes three selected support schemes under the Agreement on Subsidies and Countervailing Measures: (i) free allocation ...
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 ...
We fit CES and VES production functions to data from a numerical bottom-up optimization model of electricity supply with clean and dirty inputs. This approach allows for studying high shares of clean energy not observable today and for isolating mechanisms that impact the elasticity of substitution between clean and dirty energy. Central results show that (i) dirty inputs are not essential for production. ...
This study offers insights into the institutional arrangements established to coordinate policies aiming at the mitigation of and adaptation to climate change. Drawing on the literature on policy design, we highlight institutional arrangements as elements of policy design spaces and contend that they fall into four categories that either stress the political or problem orientation of this activity: ...
The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80% of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by helping investors to make informed decisions. However, especially in transition sectors much depends on the stringency ...
In the absence of globally coordinated action to combat climate change, governments are concerned that ambitious carbon pricing could harm the competitiveness of emission-intensive industries. A prominent measure to prevent that manufacturing producers relocate to countries with laxer environmental regulation are carbon border adjustments often referred to as carbon tariffs. Several studies have...
By Wolf-Peter Schill and Alexander Roth This page provides a brief overview of the current status of all indicators included in the Ampel-Monitor Energiewende. More detailed methodological explanations and data sources can be found on the homepage of the Ampel-Monitor and in the introductory DIW Weekly Report 27/2022. All underlying data are also available in the Open Energy Tracker, where they are ...