Time-consistent carbon pricing : the role of carbon contracts for differences : [a previous version of this paper was titled: "Time-consistent carbon pricing"]

Olga Chiappinelli and Karsten Neuhoff

Carbon pricing decisions by governments are prone to time-inconsistency, which causes the private sector to underinvest in emission-reducing technologies. We show that incentives for decarbonization can be improved if complementing carbon pricing with carbon contracts for differences, where the government commits to pay a ﬁxed carbon price level to the investors. We derive conditions under which the government is willing to "tie its hands" with the contracts.

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Year of publication:	2020
Authors:	Chiappinelli, Olga ; Neuhoff, Karsten
Publisher:	Berlin : DIW Berlin, German Institute for Economic Research
Subject:	Carbon pricing \| Time-inconsistency \| Green technology \| Climate policy \| Carbon contracts \| Treibhausgas-Emissionen \| Greenhouse gas emissions \| Ökosteuer \| Environmental tax \| Emissionshandel \| Emissions trading \| Klimaschutz \| Climate protection \| Umwelttechnik \| Environmental technology \| Theorie \| Theory \| Zeitkonsistenz \| Time consistency

Extent:	1 Online-Ressource (circa 37 Seiten) Illustrationen
Series:	Discussion papers / Deutsches Institut für Wirtschaftsforschung. - Berlin : [Verlag nicht ermittelbar], ISSN 1619-4535, ZDB-ID 2125067-4. - Vol. 1859
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Graue Literatur ; Non-commercial literature ; Arbeitspapier ; Working Paper
Language:	English
Other identifiers:	hdl:10419/218980 [Handle]
Classification:	C73 - Stochastic and Dynamic Games ; L51 - Economics of Regulation ; O31 - Innovation and Invention: Processes and Incentives ; Q58 - Government Policy
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://ebvufind01.dmz1.zbw.eu/10012197900