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...

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...

Industrial Decarbonisation in a Fragmented World:: An Effective Carbon Price with a ‘Climate Contribution’

Context and problem • The European Union’s Carbon Border Adjustment Mechanism (CBAM) was introduced to prevent carbon leakage, and to incentivise global carbon pricing. The UK is set to introduce a CBAM in 2027 for the same reasons. However, this policy measure will face limitations in a fragmented geopolitical environment if progress on global carbon pricing remains slow. • The reliance on international ...

Effectiveness and Heterogeneous Effects of Purchase Grants for Electric Vehicles

We evaluate German purchase subsidies for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) using data on new vehicle registrations in Germany dur¬ing 2015-2022. We account for confounding time trends and interacting EU-level CO2 standards using neighboring countries as a control group. We find that 40% of BEV and 25% of PHEV registrations were subsidy-induced. The program ...

Collaborative Investor Engagement with Policymakers: Changing the Rules of the Game?

Purpose – Applying universal ownership theory and drawing on a multiplecase study design, this study aims to analyze what drives institutional investors to engage with government entities and what challengesthey find in the process.Design/methodology/approach – The authors relied on document analysis and conducted 12 semistructured interviews with representatives from asset owners, assetmanagers, investor ...

Industry Transition to Climate Neutrality: Comparing Policy Approaches in Times of Geopolitical Fragmentation

European climate policy was traditionally pursued in the expectation of global policy convergence, ensuring equal opportunities for domestic and foreign firms in achieving climate neutrality. However, increasing geopolitical fragmentation has disrupted this expectation. Across the globe, national strategies increasingly favor economic policies that benefit domestic industries and coercive economic ...

Demand Response Within the Irish Wastewater Treatment Sector: Analysing Flexibility Potentials of the Aeration Process and Wastewater Pumping Within an Integrated Energy–Water System Model

Significant amounts of electricity consumed in air and water pumping make wastewater treatment energy-intensive. This study investigates the potential power system benefits of load shifting within these pumping processes. As a case study, the Irish power system and wastewater sector are studied by using an integrated modelling approach. The results show that demand flexibility within the wastewater ...

Nobody Decides for All — Modeling Incentives and Policies for Closing the Material Loop