Understanding Regressivity: Challenges and Opportunities of European Carbon Pricing
A lecture by Ulrike Kornek We examine how a European carbon price will affect citizens by studying the carbon tax incidence in 23 countries of the EU. At the national level, the distributional impact…
"The Covid crises puts China’s progress on climate at risk"
There is a danger that the recovery after the pandemic and the desire for continued rapid growth will jeopardize previous steps towards a green economy in China. Jintao Xu is a Center Director at EfD
”The time is right to implement carbon taxes”
A new report published by the renowned think tank Brookings features one section called Recipe for a green recovery: Carbon taxes.“We have been preaching about carbon taxes for decades, but we think…
Study shows: Carbon pricing can reduce social inequality
Since the protest actions of the "yellow vests" in France began in 2018, it has been argued that poorer households are more badly affected by carbon pricing since they spend a higher proportion of…
Climate Policy and Innovation in the Absence of Commitment
EfD Authors:
We compare the effects of price and quantity instruments (an emissions tax and a quota with tradable permits) on the incentive to innovate to reduce the cost of an emission-free technology. We assume that the government cannot commit to the level of a policy instrument before R&D occurs but sets the level to be socially optimal after the results of R&D are realized. The equivalence of price and quantity instruments in inducing innovation that is seen in end-of-pipe abatement models does not hold.
Emissions trading schemes and directed technological change: Evidence from China
EfD Authors:
Many countries have implemented policies to tackle climate change, with Emissions Trading Schemes (ETS) being one of the foremost attempts. Under such schemes, firms receive emission allowances. The firms that are covered by the rules are required to submit allowances for their emissions or, if they emit more than the allocated allowances, to purchase emission reduction from other firms. This imposes an emission price for carbon emissions and provides a cost-effective way for firms to comply.
Will the power sector reform in China mitigate climate change?
EfD Authors:
As an industry intensively using fossil fuel, the power sector is naturally a focus of efforts to slow climate change. In March 2015, China started the third round of power sector reform with the announcement of “Opinions on Further Deepening Power Sector Reform” (referred as the No. 9 Document), trying to promote competition, strengthen regulation and, importantly, achieve green development. But did the reform really achieve its expected goals?