New study: CO2 price of 100 euros could find acceptance - if the revenue is refunded

 
12/07/2020 - In January a CO2 price for the traffic and heating sector will be introduced in Germany for the first time. Initially it will amount to 25 euros per ton of CO2, but will rise to 55 euros by 2025. But in order to meet climate targets by 2030 significantly higher prices are necessary.
New study: CO2 price of 100 euros could find acceptance - if the revenue is refunded
"In the long term, high certificate or CO2 prices will only be an option if the distribution of costs is considered to be fair." (Photo: Alexander Popov/Unsplash)

A survey of around 6,500 German households conducted by the pollster Forsa on behalf of the Leibniz Institute for Economic Research (RWI) in cooperation with the Potsdam Institute for Climate Impact Research (PIK) and the University of Oxford shows that even a price of 100 euros per ton of CO2 could be supported by a majority - if the revenues from the CO2 pricing were to be reimbursed to the population in the form of per capita transfers.

Without a refund, only a relatively low price will be supported by the majority of the population. Such a “climate dividend” was already proposed in the run-up to the climate protection package 2030, but failed due to legal and political hurdles. The study suggests that overcoming these hurdles is a high priority.

Co-author Michael Pahle, climate researcher at PIK, explains: “Our results are of concrete relevance for advancing the fuel emission trade, which will launch next year. In the long term, high certificate or CO2 prices will only be an option if the distribution of costs is considered to be fair. This is shown not least by the debate about who should pay the CO2 surcharge on the heating costs – tenants or landlords.”

Contact for further information:

Leonard Goebel
Phone: +49 201 81 49-210
Email: leonard.goebel@rwi-essen.de
www.rwi-essen.de

PIK press office
Phone: +49 331 288 25 07
E-Mail: press@pik-potsdam.de
Twitter: @PIK_Climate
www.pik-potsdam.de