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A whole-economy carbon price for Europe and how to get there

Authors
/persons/resource/Michael.Pahle

Pahle,  Michael
Potsdam Institute for Climate Impact Research;

/persons/resource/Ottmar.Edenhofer

Edenhofer,  Ottmar
Potsdam Institute for Climate Impact Research;

/persons/resource/Mirjam.Kosch

Kosch,  Mirjam
Potsdam Institute for Climate Impact Research;

Zachmann,  Georg
External Organizations;

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Citation

Pahle, M., Edenhofer, O., Kosch, M., Zachmann, G. (2021): A whole-economy carbon price for Europe and how to get there, (Policy Contribution ; 06/21), Saint-Josse-ten-Noode : Bruegel Think Tank, 13 p.


Cite as: https://publications.pik-potsdam.de/pubman/item/item_25410
Abstract
Putting carbon pricing at the centre of the EU climate policy architecture would provide major benefits. Obtaining these benefits requires a uniform, credible and durable carbon price – the economic first-best solution, however, several preconditions required to attain this solution are not yet met. This paper proposes a sequenced approach to ensure convergence of the policy mix on the first-best in the long run.