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Policy Instruments Modelling

Homepage of the Policy Instruments Modelling group, a subunit of Research Domain III established in 2009.

NEW: 1 PhD position available in our group!

People

Group leaders:

Policy Instrument Group Members

Kai Lessmann

Robert Marschinski

Group Members:

Sophie Benard (Master's student)

Ottmar Edenhofer

Max Franks

Jobst Heitzig (RDIV, associated member)

Ingram Jaccard (internship)

Michael Jakob

Fabian Joas (external)

David Klenert

Ulrike Kornek

Paul Nahmmacher (internship)

Steffen Schlömer (TSU)

Iris Staub-Kaminski

Christoph von Stechow (TSU)

Jan Steckel 

Anne Zimmer

Research Agenda

We study the role of policy instruments as incentives: how can individually rational behavior aimed at maximizing profits or utility lead to a socially efficient outcome - rather than a „market failure“? Our research is based on decentralized models (as opposed to social planner models) which allow an explicit representation of all agents‘ behavior. The following topics are addressed in our work:

  • carbon markets & climate finance
  • technology policy
  • low carbon development
  • international cooperation on climate change
  • carbon leakage

In terms of methodology, we make use of microeconomic formal analysis, numerical modeling, qualitative-institutional analysis, and econometric-statistical data analysis.

Current Working Papers

  • Jakob, M., R. Marschinski, and M. Hübler: Between a Rock and a Hard Place: A Trade-Theory Analysis of Leakage under Production- and Consumption-Based Policies. Presented at the 2011 EAERE Annual Conference, 29 June - 2 July, Rome, Italy.    pdf
  • Kalkuhl, M. and O. Edenhofer (2010): "Prices vs. Quantities and the Intertemporal Dynamics of the Climate Rent". CESifo Working Paper No. 3044  PDF
  • Lessmann, K., R. Marschinski, M. Finus, and O. Edenhofer: Emissions Trading with Non-Signatories in a Climate Agreement – An Analysis Of Coalition Stability. Presented at the 2010 EAERE/AERE Annual Conference, 28 June - 2 July, Montreal, Canada.
  • Marschinski, R. , C. Flachsland, and M. Jakob: Linking Carbon Markets: A Trade-Theory Analysis. Presented at the 2010 EAERE/AERE Annual Conference, 28 June - 2 July, Montreal, Canada.

Ongoing Projects

  • CREW (Climate Policy in a Reluctant World, BMBF Förderschwerpunkt "Ökonomie des Klimawandels"). Joint project with Marco Runkel (TU Berlin) and Roland Strausz (HU Berlin). Role of PI group: project lead.
  • LIMITS (Low climate IMpact scenarios and the Implications of required Tight
    emission control Strategies), project under EU FP7 ENV. Joint project with various European partners, e.g. FEEM, IIASA, LSE Grantham Institute, ECN. Role of PI group: contribution to Working Package 2, in particular "Regional policies under second-best conditions".
  • EntDekEn (Klimaschutz, Entwicklung und Gerechtigkeit: Dekarbonisierung in Entwicklungs- und Schwellenländern), funded by BMBF. Joint project with the GIGA institute and the Chair of Development Economics at University of Göttingen. Role of PI group: project lead.
  • Ökonomik einer integrierten und langfristigen Klima- und Energiepolitik (WGL Pakt für Forschung und Innovation 2010). Joint project with Environmental Economics group of ZEW Mannheim. Role of PI group: contributing partner.

Activities

  • PIG Reading Seminar: 9 May 2012, 11h, P. Cramton and S. Stoft (2012): "Global Climate Games: How Pricing and a Green Fund Foster Cooperation". Economics of Energy & Environmental Policy 1(2):125-36.   [past events]
  • PIG Informal Discussion Series: 17 February 2012, visit and informal talks at German Federal Ministry of the Environment (BMU). [past events]
  • PIG Research Seminars: 22 March 2012, 14h: Status Consumption and its Relevance for Climate Change Policy, by Linus Mattauch.   [past events]
  • University lectures and seminars attended. [internal]

Models

  • MICA: a model of international cooperation on climate change
  • PRIDE: a model for finding first and second best policies in the presence of strategic interactions of multiple actors

Former Group Members