Knopf, B., Burghaus, K., Flachsland, C., Jakob, M., Koch, N., Edenhofer, O.

Shifting Paradigms in Carbon Pricing

in Intereconomics, 03.07.2018

Peer Review , Task Force Public Finance , Task Force Public Economics , Director , Climate and Development , Sustainable Resource Management and Global Change

The first pillar of the old paradigm of carbon pricing is the assumption that an emissions trading scheme is the most cost-efficient way to achieve a certain emission reduction target. However, it has become obvious that the old paradigm is unable to solve a number of challenges, e.g. market participants’ myopia.

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