@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}
}
@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}
}
@article{SedovaKalkuhlMendelsohn2020,
  author    = {Sedova, Barbora and Kalkuhl, Matthias and Mendelsohn, Robert},
  title     = {Distributional impacts of weather and climate in rural India},
  series = {Economics of disasters and climate change},
  volume    = {4},
  journal   = {Economics of disasters and climate change},
  number    = {1},
  publisher = {Springer},
  address   = {Cham},
  issn      = {2511-1280},
  doi       = {10.1007/s41885-019-00051-1},
  pages     = {5 -- 44},
  year      = {2020},
  abstract  = {Climate-related costs and benefits may not be evenly distributed across the population. We study distributional implications of seasonal weather and climate on within-country inequality in rural India. Utilizing a first difference approach, we find that the poor are more sensitive to weather variations than the non-poor. The poor respond more strongly to (seasonal) temperature changes: negatively in the (warm) spring season, more positively in the (cold) rabi season. Less precipitation is harmful to the poor in the monsoon kharif season and beneficial in the winter and spring seasons. We show that adverse weather aggravates inequality by reducing consumption of the poor farming households. Future global warming predicted under RCP8.5 is likely to exacerbate these effects, reducing consumption of poor farming households by one third until the year 2100. We also find inequality in consumption across seasons with higher consumption during the harvest and lower consumption during the sowing seasons.},
  language  = {en}
}
@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{BaldeniusBernsteinKalkuhletal.2021,
  author    = {Baldenius, Till and Bernstein, Tobias and Kalkuhl, Matthias and von Kleist-Retzow, Maximilian and Koch, Nicolas},
  title     = {Ordnungsrecht oder Preisinstrumente?},
  series = {Ifo-Schnelldienst},
  volume    = {74},
  journal   = {Ifo-Schnelldienst},
  number    = {6},
  publisher = {Institut f{\"u}r Wirtschaftsforschung},
  address   = {M{\"u}nchen},
  issn      = {0018-974X},
  pages     = {6 -- 10},
  year      = {2021},
  language  = {de}
}
@article{EdenhoferKalkuhlRequateetal.2020,
  author    = {Edenhofer, Ottmar and Kalkuhl, Matthias and Requate, Tilman and Steckel, Jan Christoph},
  title     = {How assets get stranded},
  series = {Journal of environmental economics and management},
  volume    = {100},
  journal   = {Journal of environmental economics and management},
  publisher = {Elsevier},
  address   = {Amsterdam},
  issn      = {0095-0696},
  doi       = {10.1016/j.jeem.2020.102300},
  pages     = {4},
  year      = {2020},
  abstract  = {Internalizing external costs of carbon is a fundamental goal of climate policy. Since the seminal work of Arthur Pigou in 1920, economic theory has analyzed the efficiency gains arising from various instruments that internalize externalities and lead to Pareto-improvements. It is widely recognized in environmental economics that a carbon price would effectively reflect the scarcity of the atmospheric disposal space for carbon depending on the temperature target that is to be achieved. The question of how to organize the transition process, i.e. moving from inefficient to efficient allocations, and implementing the necessary policies, has gained increasing attention in recent years. Arguably, the transition process is tightly interwoven with political processes that include complex interactions between societal stakeholders, such as households and firms, on the one hand, and political decision makers, on the other. Accordingly, understanding political-economy aspects of the transition process, including distributional outcomes, is becoming increasingly relevant. While a growing literature discusses the distributional implications of climate policy on households, it is less well understood how asset owners might be affected by climate policy and how these potential impacts would interact with the transition process. This Special Section focuses on public policy challenges related to this transition problem, with special emphasis on asset owners. A core theme is the special role of stranded assets, i.e. a devaluation of capital stocks or financial assets either by introducing a stringent carbon price or by omitting a pre-announced policy of this kind.},
  language  = {en}
}
@article{KalkuhlWenz2020,
  author    = {Kalkuhl, Matthias and Wenz, Leonie},
  title     = {The impact of climate conditions on economic production},
  series = {Journal of Environmental Economics and Management},
  volume    = {103},
  journal   = {Journal of Environmental Economics and Management},
  publisher = {Elsevier},
  address   = {San Diego},
  issn      = {0095-0696},
  doi       = {10.1016/j.jeem.2020.102360},
  pages     = {20},
  year      = {2020},
  abstract  = {We present a novel data set of subnational economic output, Gross Regional Product (GRP), for more than 1500 regions in 77 countries that allows us to empirically estimate historic climate impacts at different time scales. Employing annual panel models, long-difference regressions and cross-sectional regressions, we identify effects on productivity levels and productivity growth. We do not find evidence for permanent growth rate impacts but we find robust evidence that temperature affects productivity levels considerably. An increase in global mean surface temperature by about 3.5°C until the end of the century would reduce global output by 7-14\% in 2100, with even higher damages in tropical and poor regions. Updating the DICE damage function with our estimates suggests that the social cost of carbon from temperature-induced productivity losses is on the order of 73-142\$/tCO2 in 2020, rising to 92-181\$/tCO2 in 2030. These numbers exclude non-market damages and damages from extreme weather events or sea-level rise.},
  language  = {en}
}