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Potsdam Institute for Climate Impact Research

Climate plan for Germany and Europe: Economists propose CO2 price reform” state

Climate plan for Germany and Europe: Economists propose CO2 price reform

A few days ago the UN Environment Agency advocated an international green tax reform - now economists have presented a new concept for a CO2 price reform in Germany and Europe right before the start of the climate summit in Katowice, Poland. SPIEGEL magazine was reporting on this issue in advance this weekend. Christoph Schmidt, Chair of the German Council of Economic Experts from RWI Essen, Leibniz Institute for Economic Research, and Ottmar Edenhofer, Director of the Potsdam Institute for Climate Impact Research (PIK) and the Mercator Research Institute on Global Commons and Climate Change (MCC), have jointly drafted the cornerstones for a market-based way out of coal. Climate-damaging CO2-emissions would need to become more expensive, while at the same time the electricity tax could be lowered. A socially just and efficient transition to a sustainable economy is possible, according to the professors, who both belong to the Leibniz Association. If, on the other hand, greenhouse gas emissions were not reduced, there would be the risk of economic climate damage of unprecedented proportions. Read more...


Coal power plant Belchatow in Poland. Photo: Thinkstock

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