@article{SurethKalkuhlEdenhoferetal.2023,
  author    = {Sureth, Michael and Kalkuhl, Matthias and Edenhofer, Ottmar and Rockstr{\"o}m, Johan},
  title     = {A welfare economic approach to planetary boundaries},
  series = {Jahrb{\"u}cher f{\"u}r National{\"o}konomie und Statistik},
  volume    = {243},
  journal   = {Jahrb{\"u}cher f{\"u}r National{\"o}konomie und Statistik},
  number    = {5},
  publisher = {De Gruyter Oldenbourg},
  address   = {Berlin},
  issn      = {0021-4027},
  doi       = {10.1515/jbnst-2022-0022},
  pages     = {477 -- 542},
  year      = {2023},
  abstract  = {The crises of both the climate and the biosphere are manifestations of the imbalance between human extractive, and polluting activities and the Earth's regenerative capacity. Planetary boundaries define limits for biophysical systems and processes that regulate the stability and life support capacity of the Earth system, and thereby also define a safe operating space for humanity on Earth. Budgets associated to planetary boundaries can be understood as global commons: common pool resources that can be utilized within finite limits. Despite the analytical interpretation of planetary boundaries as global commons, the planetary boundaries framework is missing a thorough integration into economic theory. We aim to bridge the gap between welfare economic theory and planetary boundaries as derived in the natural sciences by presenting a unified theory of cost-benefit and cost-effectiveness analysis. Our pragmatic approach aims to overcome shortcomings of the practical applications of CEA and CBA to environmental problems of a planetary scale. To do so, we develop a model framework and explore decision paradigms that give guidance to setting limits on human activities. This conceptual framework is then applied to planetary boundaries. We conclude by using the realized insights to derive a research agenda that builds on the understanding of planetary boundaries as global commons.},
  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{StreflerKrieglerBaueretal.2021,
  author    = {Strefler, Jessica and Kriegler, Elmar and Bauer, Nico and Luderer, Gunnar and Pietzcker, Robert C. and Giannousakis, Anastasis and Edenhofer, Ottmar},
  title     = {Alternative carbon price trajectories can avoid excessive carbon removal},
  series = {Nature communications},
  volume    = {12},
  journal   = {Nature communications},
  number    = {1},
  publisher = {Nature Publishing Group},
  address   = {London},
  issn      = {2041-1723},
  doi       = {10.1038/s41467-021-22211-2},
  pages     = {8},
  year      = {2021},
  abstract  = {The large majority of climate change mitigation scenarios that hold warming below 2 °C show high deployment of carbon dioxide removal (CDR), resulting in a peak-and-decline behavior in global temperature. This is driven by the assumption of an exponentially increasing carbon price trajectory which is perceived to be economically optimal for meeting a carbon budget. However, this optimality relies on the assumption that a finite carbon budget associated with a temperature target is filled up steadily over time. The availability of net carbon removals invalidates this assumption and therefore a different carbon price trajectory should be chosen. We show how the optimal carbon price path for remaining well below 2 °C limits CDR demand and analyze requirements for constructing alternatives, which may be easier to implement in reality. We show that warming can be held at well below 2 °C at much lower long-term economic effort and lower CDR deployment and therefore lower risks if carbon prices are high enough in the beginning to ensure target compliance, but increase at a lower rate after carbon neutrality has been reached.},
  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}
}
@article{EdenhoferKalkuhlRoolfs2021,
  author    = {Edenhofer, Ottmar and Kalkuhl, Matthias and Roolfs, Christina},
  title     = {Carbon pricing and revenue recycling},
  series = {CESifo forum},
  volume    = {22},
  journal   = {CESifo forum},
  number    = {5},
  publisher = {Ifo},
  address   = {Munich},
  issn      = {2190-717X},
  pages     = {10 -- 14},
  year      = {2021},
  language  = {en}
}
@article{EdenhoferKalkuhlOckenfels2020,
  author    = {Edenhofer, Ottmar and Kalkuhl, Matthias and Ockenfels, Axel},
  title     = {Das Klimaschutzprogramm der Bundesregierung},
  series = {Perspektiven der Wirtschaftspolitik},
  volume    = {21},
  journal   = {Perspektiven der Wirtschaftspolitik},
  number    = {1},
  publisher = {De Gruyter},
  address   = {Berlin},
  issn      = {1465-6493},
  doi       = {10.1515/pwp-2020-0001},
  pages     = {4 -- 18},
  year      = {2020},
  abstract  = {Das Klimaschutzgesetz hat einen Paradigmenwechsel eingeleitet: den Einstieg in eine CO2-Bepreisung als k{\"u}nftiges Leitinstrument der Klimapolitik. Auf den ersten Blick ist der CO2-Preis unter einer F{\"u}lle von F{\"o}rdermaßnahmen und ordnungsrechtlichen Regelungen versch{\"u}ttet, deren Wirksamkeit und Kosten h{\"o}chst unsicher sind. Der CO2-Preis ist aber so angelegt, dass er langfristig das dominante Instrument einer europ{\"a}isch harmonisierten Klimapolitik werden kann. Der angedeutete Paradigmenwechsel der deutschen Klimapolitik {\"o}ffnet damit die T{\"u}r, die europ{\"a}ische und internationale Kooperation zu st{\"a}rken. Dazu ist es aber notwendig, neben der europ{\"a}ischen auch die globale Klimapolitik neu auszurichten. Auch dort sollten sich die Verhandlungen statt auf nationale Mengenziele auf CO2-Preise konzentrieren. Die erforderliche Kooperation wird m{\"o}glich, wenn die Regierungen Transferzahlungen strategisch und reziprok nutzen. So k{\"o}nnte die Effektivit{\"a}t der Klimapolitik erh{\"o}ht werden und es ließen sich die entstehenden Verteilungskonflikte entsch{\"a}rfen.},
  language  = {de}
}
@article{SchultesPiontekSoergeletal.2021,
  author    = {Schultes, Anselm and Piontek, Franziska and Soergel, Bjoern and Rogelj, Joeri and Baumstark, Lavinia and Kriegler, Elmar and Edenhofer, Ottmar and Luderer, Gunnar},
  title     = {Economic damages from on-going climate change imply deeper near-term emission cuts},
  series = {Environmental research letters},
  volume    = {16},
  journal   = {Environmental research letters},
  number    = {10},
  publisher = {IOP Publishing},
  address   = {Bristol},
  issn      = {1748-9326},
  doi       = {10.1088/1748-9326/ac27ce},
  pages     = {11},
  year      = {2021},
  abstract  = {Pathways toward limiting global warming to well below 2 ∘C, as used by the IPCC in the Fifth Assessment Report, do not consider the climate impacts already occurring below 2 ∘C. Here we show that accounting for such damages significantly increases the near-term ambition of transformation pathways. We use econometric estimates of climate damages on GDP growth and explicitly model the uncertainty in the persistence time of damages. The Integrated Assessment Model we use includes the climate system and mitigation technology detail required to derive near-term policies. We find an optimal carbon price of \$115 per tonne of CO2 in 2030. The long-term persistence of damages, while highly uncertain, is a main driver of the near-term carbon price. Accounting for damages on economic growth increases the gap between the currently pledged nationally determined contributions and the welfare-optimal 2030 emissions by two thirds, compared to pathways considering the 2 ∘C limit only.},
  language  = {en}
}
@article{PiontekKalkuhlKriegleretal.2019,
  author    = {Piontek, Franziska and Kalkuhl, Matthias and Kriegler, Elmar and Schultes, Anselm and Leimbach, Marian and Edenhofer, Ottmar and Bauer, Nico},
  title     = {Economic Growth Effects of Alternative Climate Change Impact Channels in Economic Modeling},
  series = {Environmental \& resource economics : the official journal of the European Association of Environmental and Resource Economists},
  volume    = {73},
  journal   = {Environmental \& resource economics : the official journal of the European Association of Environmental and Resource Economists},
  number    = {4},
  publisher = {Springer},
  address   = {Dordrecht},
  issn      = {0924-6460},
  doi       = {10.1007/s10640-018-00306-7},
  pages     = {1357 -- 1385},
  year      = {2019},
  abstract  = {Despite increasing empirical evidence of strong links between climate and economic growth, there is no established model to describe the dynamics of how different types of climate shocks affect growth patterns. Here we present the first comprehensive, comparative analysis of the long-term dynamics of one-time, temporary climate shocks on production factors, and factor productivity, respectively, in a Ramsey-type growth model. Damages acting directly on production factors allow us to study dynamic effects on factor allocation, savings and economic growth. We find that the persistence of impacts on economic activity is smallest for climate shocks directly impacting output, and successively increases for direct damages on capital, loss of labor and productivity shocks, related to different responses in savings rates and factor-specific growth. Recurring shocks lead to large welfare effects and long-term growth effects, directly linked to the persistence of individual shocks. Endogenous savings and shock anticipation both have adaptive effects but do not eliminate differences between impact channels or significantly lower the dissipation time. Accounting for endogenous growth mechanisms increases the effects. We also find strong effects on income shares, important for distributional implications. This work fosters conceptual understanding of impact dynamics in growth models, opening options for links to empirics.},
  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     = {Effects of the energy price crisis on households in Germany},
  publisher = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH},
  address   = {Berlin},
  pages     = {35},
  year      = {2022},
  language  = {en}
}
@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}
}