@techreport{LessmannGrunerKalkuhletal.2024, type = {Working Paper}, author = {Lessmann, Kai and Gruner, Friedemann and Kalkuhl, Matthias and Edenhofer, Ottmar}, title = {Emissions Trading with Clean-up Certificates}, series = {CEPA Discussion Papers}, journal = {CEPA Discussion Papers}, number = {79}, issn = {2628-653X}, doi = {10.25932/publishup-64136}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:517-opus4-641368}, pages = {35}, year = {2024}, abstract = {We analyze how conventional emissions trading schemes (ETS) can be modified by introducing "clean-up certificates" to allow for a phase of net-negative emissions. Clean-up certificates bundle the permission to emit CO2 with the obligation for its removal. We show that demand for such certificates is determined by cost-saving technological progress, the discount rate and the length of the compliance period. Introducing extra clean-up certificates into an existing ETS reduces near-term carbon prices and mitigation efforts. In contrast, substituting ETS allowances with clean-up certificates reduces cumulative emissions without depressing carbon prices or mitigation in the near term. We calibrate our model to the EU ETS and identify reforms where simultaneously (i) ambition levels rise, (ii) climate damages fall, (iii) revenues from carbon prices rise and (iv) carbon prices and aggregate mitigation cost fall. For reducing climate damages, roughly half of the issued clean-up certificates should replace conventional ETS allowances. In the context of the EU ETS, a European Carbon Central Bank could manage the implementation of cleanup certificates and could serve as an enforcement mechanism.}, language = {en} } @article{WenzCarrKoegeletal.2023, author = {Wenz, Leonie and Carr, Robert Devon and K{\"o}gel, Noah and Kotz, Maximilian and Kalkuhl, Matthias}, title = {DOSE - global data set of reported sub-national economic output}, series = {Scientific data}, volume = {10}, journal = {Scientific data}, number = {1}, publisher = {Nature Publishing Group}, address = {London}, issn = {2052-4463}, doi = {10.1038/s41597-023-02323-8}, pages = {1 -- 17}, year = {2023}, abstract = {Many phenomena of high relevance for economic development such as human capital, geography and climate vary considerably within countries as well as between them. Yet, global data sets of economic output are typically available at the national level only, thereby limiting the accuracy and precision of insights gained through empirical analyses. Recent work has used interpolation and downscaling to yield estimates of sub-national economic output at a global scale, but respective data sets based on official, reported values only are lacking. We here present DOSE — the MCC-PIK Database Of Sub-national Economic Output. DOSE contains harmonised data on reported economic output from 1,661 sub-national regions across 83 countries from 1960 to 2020. To avoid interpolation, values are assembled from numerous statistical agencies, yearbooks and the literature and harmonised for both aggregate and sectoral output. Moreover, we provide temporally- and spatially-consistent data for regional boundaries, enabling matching with geo-spatial data such as climate observations. DOSE provides the opportunity for detailed analyses of economic development at the subnational level, consistent with reported values.}, language = {en} } @article{KalkuhlSteckelEdenhofer2020, author = {Kalkuhl, Matthias and Steckel, Jan Christoph and Edenhofer, Ottmar}, title = {All or nothing}, series = {Journal of environmental economics and management}, volume = {100}, journal = {Journal of environmental economics and management}, publisher = {Elsevier}, address = {San Diego}, issn = {0095-0696}, doi = {10.1016/j.jeem.2019.01.012}, pages = {21}, year = {2020}, abstract = {This paper develops a new perspective on stranded assets in climate policy using a partial equilibrium model of the energy sector. Political-economy related aspects are considered in the government's objective function. Lobbying power of firms or fiscal considerations by the government lead to time inconsistency: The government will deviate from a previously announced carbon tax which creates stranded assets. Under rational expectations, we show that a time-consistent policy outcome exists with either a zero carbon tax or a prohibitive carbon tax that leads to zero fossil investments - an "all-or-nothing" policy. Although stranded assets are crucial to such a bipolar outcome, they disappear again under time-consistent policy. Which of the two outcomes (all or nothing) prevails depends on the lobbying power of owners of fixed factors (land and fossil resources) but not on fiscal revenue considerations or on the lobbying power of renewable or fossil energy firms.}, language = {en} } @article{LessmannKalkuhl2023, author = {Lessmann, Kai and Kalkuhl, Matthias}, title = {Climate finance intermediation}, series = {Journal of the Association of Environmental and Resource Economists}, volume = {11}, journal = {Journal of the Association of Environmental and Resource Economists}, number = {1}, publisher = {University of Chicago Press}, address = {Chicago, IL}, issn = {2333-5955}, doi = {10.1086/725920}, pages = {213 -- 251}, year = {2023}, abstract = {Interest rates are central determinants of saving and investment decisions. Costly financial intermediation distorts these price signals by creating a spread between deposit and loan rates. This study investigates how bank spreads affect climate policy in its ambition to redirect capital. We identify various channels through which interest spreads affect carbon emissions in a dynamic general equilibrium model. Interest rate spreads increase abatement costs due to the higher relative price for capital-intensive carbon-free energy, but they also tend to reduce emissions due to lower overall economic growth. For the global average interest rate spread of 5.1 percentage points, global warming increases by 0.2°C compared to the frictionless economy. For a given temperature target to be achieved, interest rate spreads necessitate substantially higher carbon taxes. When spreads arise from imperfect competition in the intermediation sector, the associated welfare costs can be reduced by clean energy subsidies or even eliminated by economy-wide investment subsidies.}, language = {en} } @article{SinghalPahleKalkuhletal.2021, author = {Singhal, Puja and Pahle, Michael and Kalkuhl, Matthias and Sommer, Stephan and Levesque, Antoine and Berneiser, Jessica}, title = {Beyond good faith}, series = {SSRN eLibrary / Social Science Research Network}, journal = {SSRN eLibrary / Social Science Research Network}, publisher = {SSRN - Elsevier}, address = {Rochester, NY}, issn = {1556-5068}, doi = {10.2139/ssrn.3947800}, pages = {29}, year = {2021}, abstract = {The ambitious climate targets set by industrialized nations worldwide cannot be met without decarbonizing the building stock. Using Germany as a case study, this paper takes stock of the extensive set of energy efficiency policies that are already in place and clarifies that they have been designed "in good faith" but lack in overall effectiveness as well as cost-efficiency in achieving these climate targets. We map out the market failures and behavioural considerations that are potential reasons for why realized energy savings fall below expectations and why the household adoption of energy-efficient and low-carbon technologies has remained low. We highlight the pressing need for data and modern empirical research to develop targeted and cost-effective policies seeking to correct these market failures. To this end, we identify some key research questions and identify gaps in the data required for evidence-based policy.}, language = {en} } @techreport{KellnerAmbergBergmannetal.2022, type = {Working Paper}, author = {Kellner, Maximilian and Amberg, Maximilian and Bergmann, Tobias and Roolfs, Christina and Kalkuhl, Matthias}, title = {Entlastungspakete f{\"u}r Energiepreisanstiege}, publisher = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH}, address = {Berlin}, doi = {10.5281/zenodo.6617130}, pages = {23}, year = {2022}, language = {de} } @techreport{SteckelMissbachOhlendorfetal.2022, type = {Working Paper}, author = {Steckel, Jan Christoph and Missbach, Leonard and Ohlendorf, Nils and Feindt, Simon and Kalkuhl, Matthias}, title = {Effects of the energy price crisis on European households}, publisher = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH}, address = {Berlin}, pages = {30}, year = {2022}, language = {en} } @techreport{KalkuhlFlachslandKnopfetal.2022, type = {Working Paper}, author = {Kalkuhl, Matthias and Flachsland, Christian and Knopf, Brigitte and Amberg, Maximilian and Bergmann, Tobias and Kellner, Maximilian and St{\"u}ber, Sophia and Haywood, Luke and Roolfs, Christina and Edenhofer, Ottmar}, title = {Auswirkungen der Energiepreiskrise auf Haushalte in Deutschland}, publisher = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH}, address = {Berlin}, pages = {37}, year = {2022}, language = {de} } @techreport{KalkuhlAmbergBergmannetal.2022, type = {Working Paper}, author = {Kalkuhl, Matthias and Amberg, Maximilian and Bergmann, Tobias and Knopf, Brigitte and Edenhofer, Ottmar}, title = {Gaspreisdeckel, Mehrwertsteuersenkung, Energiepauschale}, publisher = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH}, address = {Berlin}, pages = {23}, year = {2022}, language = {de} } @article{GrunerFussKalkuhletal.2022, author = {Gruner, Friedemann and Fuß, Sabine and Kalkuhl, Matthias and Minx, Jan C. and Strefler, Jessica and Merfort, Anne}, title = {Wie CO2-Entnahmen helfen k{\"o}nnen, die Klimaziele zu erreichen}, series = {Klima und Recht}, volume = {1}, journal = {Klima und Recht}, number = {1}, publisher = {C.H. Beck}, address = {M{\"u}nchen}, issn = {2750-0551}, pages = {18 -- 21}, year = {2022}, language = {de} }