How best to make the transition from a high- to low-carbon economy remains open for debate, involving complex dynamics that go beyond basic models of emissions abatement. It is these dynamics that the authors aim to analyse with the model they develop in this paper, showing that it is optimal to repurpose and strand a substantial amount of capital. Read more
In light of the new standards for carbon removal techniques launched at COP27, Josh Burke outlines the risks of treating carbon removals as a homogenous group and the implications for reaching net zero. Read more
Assessing the cost of climate change mitigation Economists continue to model the scale of investment required to reduce global greenhouse... Read more
Following reform of the EU emissions trading system (ETS) in 2018 further regulatory amendments are on the horizon as part of the 2021 review. This paper evaluates and compares the impacts of realistic regulatory changes within the ETS to inform the 2021 review and raise ambition, examining two main policy levers: the linear reduction factor and the market stability reserve. Read more
Reports that the British Government will reveal plans to cut fuel duty in this week’s pre-Budget announcement are dismaying just four months after it committed to reaching net-zero greenhouse gas emissions by 2050, says Josh Burke, especially when there is consensus on how to cut emissions from the transport sector. Read more
Simon Dietz, Tobias Kruse, Isabella Neuweg and Lutz Sager argue that Germany should set out a clear plan for a stronger carbon price as an effective route for reducing greenhouse gas emissions that can also improve the circumstances of lower-income households. Read more
This report explains the importance of pricing carbon as a key component of any strategy to reach net-zero emissions in the UK, setting out how the price may differ sector to sector and how to incentivise negative emissions. Read more
To achieve ‘net zero’ greenhouse gas emissions by 2050, the Government should create a market for so-called ‘negative emissions’ that... Read more
This June, South Africa’s much-delayed carbon tax is due to be implemented, to include a new levy on petrol and diesel. Patrick Curran contests that changing consumer behaviour and reducing emissions will be very difficult without investment in viable transport alternatives – and development of a wider suite of policies to cut emissions. Read more
