The performance of market based environmental regulation is affected by patents and vice versa. This interaction is studied for a new type of innovation where new technologies reduce emissions of a specific pollutant but at the same time cause a new type of damage. A robust finding is that the...

We often use delegation as a commitment device if a government faces problems of timeinconsistency. McCallum (1995, AER P&P) challenged this practice, claiming that delegation merely relocates the commitment problem but does not solve it. In a model where delegation and specific policies are...

Most real world emission permit schemes are in effect hybrid instruments that feature both quantity and price controls. While the effects of price bounds are well understood for issues such as uncertain abatement costs it has not been investigated how such bounds affect time-consistency of...

The European Union and Germany have recently committed themselves to greenhouse-gas neutrality by 2050 and 2045, respectively. This substantially reduces their gaps in ambition to the Paris climate goals. However, the current climate policy mix is not sufficient to reach these targets: There is...

We test the hypothesis that protest participation decisions in an adult population of potential climate protesters are interdependent. Subjects (n = 1,510) from four German cities were recruited two weeks before protest date. We measured participation and beliefs about the other subjects'...

In a parsimonious two-sector general equilibrium model, we challenge the widely-held tenet that within a cap-and-trade system renewable energy policies have no effect on carbon emissions. If the cap does not capture all sectors, we demonstrate that variations of a renewable energy subsidy change...