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Trade Effects of Carbon Pricing Policies

Policies that affect the cost of using fossil fuels in production have a complex impact on the economy. In this paper, we focus on the role of these policies for the pattern of comparative advantage through their effect on production costs in manufacturing industries. Using data on carbon prices and fossil fuel subsidies, we show that less stringent carbon pricing policies increase comparative advantage ...

Carbon Pricing: Swift Introduction of a Climate Dividend Needed, Reduce at Higher Incomes

With the transition from the German national emissions trading system to the European Emissions Trading System (EU ETS2) from 2027, final consumer prices for fossil motor and heating fuels are likely to rise significantly. This increase will affect low-income households more noticeably, as they spend a larger share of their income on energy than high-income households. Existing relief measures, such ...

Weather-Related Disasters and Inflation in the Euro Area

This article investigates the impact of weather-related disasters on inflation in the euro area over the period 1996–2021. Using a panel structural vector autoregression approach, we explore whether weather-related disasters have a significant and persistent effect on inflation, as well as the role that demand-side and supply-side channels play as drivers of inflation. We also analyse the heterogeneous ...

De-Fueling Externalities: Causal Effects of Fuel Taxation and Mediating Mechanisms for Reducing Climate and Pollution Costs

This paper provides the most comprehensive assessment of how fuel taxation reduces climate and pollution externalities with a quasi-experimental evaluation of the world’s largest environmental tax reform. Leveraging multiple causal inference methods, we compare carbon and air pollutant emissions of the actual and counterfactual German transport sector following the 1999 eco-tax reform and demonstrate ...

Policy Evaluation of Waste Pricing Programs Using Heterogeneous Causal Effect Estimation

Using machine learning methods in a quasi-experimental setting, I study the heterogeneous effects of introducing waste prices - unit prices on household unsorted waste disposal - on waste demands and municipal costs. Using a unique panel of Italian municipalities with large variation in prices and observables, I show that waste demands are nonlinear. I find evidence of constant elasticities at low ...

Toward a Systemic Approach to Energy Transformation in Algeria

This paper examines the drivers of Algeria's energy transformation as well as the cross-cutting issues and challenges in the transformation process. It suggests a framework that accelerates sustainable transformation based on the ideologies of systemic reasoning. Interviews were conducted with 20 energy experts in Algeria, along with a content analysis of policy documents, reports, and previous studies. ...

Green or Greedy: The Relationship between Perceived Benefits and Homeowners’ Intention to Adopt Residential Low-carbon Technologies

Transitioning to a net-zero economy requires a nuanced understanding of homeowners’ decision-making pathways when considering the adoption of Low Carbon Technologies (LCTs). These LCTs present both personal and collective benefits, with positive perceptions critically influencing attitudes and intentions. Our study analyses the relationship between two primary benefits: the household-level financial ...

Mixed Mid-Term Review for German Traffic Light Coalition in the Energy Transition; Significant Effort Needed to Achieve Targets

The German traffic light coalition began its term two years ago with ambitious energy policy goals. Halfway through the legislative period, its track record is mixed. Good progress has been made in some areas, but in others a large gap between targets and the status quo remains. The Ampel-Monitor Energiewende by the German Institute for Economic Research (DIW Berlin) shows where we stand today in terms ...

Kazakhstan: Decarbonisation Pathways towards a Net Zero Future by 2060 - The Opportunities and Challenges ahead: Final Report

Measuring Total Carbon Pricing

While countries increasingly commit to pricing greenhouse gases directly through carbon taxes or emissions trading systems, indirect forms of carbon pricing-such as fuel excise taxes and fuel subsidy reforms-remain important factors affecting the mitigation incentives in an economy. Taken together, how can policy makers think about the overall price signal for carbon emissions and the incentive it ...