Effective Climate Policy Doesn’t Have to be Expensive

  • Gugler, K. (Contributor)
  • Adhurim Haxhimusa (Contributor)
  • Mario Liebensteiner (Contributor)

Activity: Talk or presentationScience to science


We compare the effectiveness of different climate policies in terms of emissions
abatement and costs in the British and German electricity markets. For this purpose, we estimate the effects of carbon pricing as well as wind and solar feed-in on electricity Generation from coal and gas allowing us to calculate the costs of abatement of one tonne of CO2 for the different policies. Moreover, we are able to compare the effectiveness of a relatively low EU ETS carbon price in Germany with a significantly higher carbon price due a unilateral top-up tax (the Carbon Price Support) in the UK. We find that a reasonably high price on emissions
is the most cost-effective climate policy, while the subsidization of wind is preferable to solar power. A carbon price of around e35 was enough in the UK to induce short-run fuel switching between coal- and gas-fired power plants.
Period30 Aug 20191 Sep 2019
Event titleEARIE
Event typeUnkonwn
Degree of RecognitionInternational

Austrian Classification of Fields of Science and Technology (ÖFOS)

  • 502013 Industrial economics
  • 502034 Regulatory economics