@incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Globale Energiewende - Wege zu einer nachhaltigen Energieversorgung}, series = {Rolle der Wissenschaft im Globalen Wandel. Nova Acta Leopoldina}, booktitle = {Rolle der Wissenschaft im Globalen Wandel. Nova Acta Leopoldina}, publisher = {Leopoldina}, address = {Halle}, isbn = {978-3-8047-3210-0}, pages = {275 -- 295}, language = {de} } @incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Globale Energiewende. Dekarbonisierung der Wirtschaft}, series = {Jahrbuch {\"O}kologie}, booktitle = {Jahrbuch {\"O}kologie}, publisher = {Verlag S. Hirzel}, address = {Stuttgart}, pages = {125 -- 140}, language = {de} } @article{FlachslandEdenhofer, author = {Flachsland, Christian and Edenhofer, Ottmar}, title = {Auf mehreren Ebenen Agieren}, series = {Politische {\"O}kologie}, journal = {Politische {\"O}kologie}, number = {133}, pages = {108 -- 117}, language = {de} } @article{EdenhoferMinx, author = {Edenhofer, Ottmar and Minx, Jan C.}, title = {Mapmakers and navigators, facts and values}, series = {Science}, volume = {345}, journal = {Science}, number = {6192}, doi = {10.1126/science.1255998}, pages = {37 -- 38}, language = {en} } @misc{EdenhoferPichsMadrugaSokonaetal., author = {Edenhofer, Ottmar and Pichs-Madruga, Ram{\´o}n and Sokona, Youba and Minx, Jan C.}, title = {Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change}, publisher = {Cambridge University Press}, address = {Cambridge}, isbn = {978-1-107-05821-7}, pages = {1454}, language = {de} } @incollection{EdenhoferPichsMadrugaMinx, author = {Edenhofer, Ottmar and Pichs-Madruga, Ram{\´o}n and Minx, Jan C.}, title = {Summary for Policymakers}, series = {Climate change 2014 : Mitigation of climate change ; working group III contribution to the fifth assessment report of the Intergovernmental Panel on Climate Change}, booktitle = {Climate change 2014 : Mitigation of climate change ; working group III contribution to the fifth assessment report of the Intergovernmental Panel on Climate Change}, publisher = {Cambridge University Press}, address = {Cambridge}, isbn = {978-1-107-65481-5}, pages = {1 -- 30}, language = {en} } @incollection{EdenhoferPichsMadrugaSokonaetal., author = {Edenhofer, Ottmar and Pichs-Madruga, Ram{\´o}n and Sokona, Youba and Minx, Jan C.}, title = {Technical Summary}, series = {Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change}, booktitle = {Climate Change 2014: Mitigation of Climate Change. Contribution of Working Group III to the Fifth Assessment Report of the Intergovernmental Panel on Climate Change}, publisher = {Cambridge University Press}, address = {Cambridge}, isbn = {978-1-107-05821-7}, pages = {33 -- 107}, language = {en} } @article{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Ein Global Deal f{\"u}r den Klimaschutz}, series = {Amos international}, volume = {2}, journal = {Amos international}, number = {1}, pages = {24 -- 33}, language = {de} } @article{EdenhoferFlachslandLuderer, author = {Edenhofer, Ottmar and Flachsland, Christian and Luderer, Gunnar}, title = {Eckpunkte einer globalen Klimaschutzpolitik}, series = {Kirche und Gesellschaft}, journal = {Kirche und Gesellschaft}, number = {355}, language = {de} } @incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Kosten und Optionen f{\"u}r den Klimaschutz}, series = {Der UN - Weltklimareport. Bericht {\"u}ber eine aufhaltsame Katastrophe}, booktitle = {Der UN - Weltklimareport. Bericht {\"u}ber eine aufhaltsame Katastrophe}, publisher = {KiWi-Taschenbuch}, isbn = {978-3462039603}, pages = {268 -- 280}, language = {de} } @incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Kosten und Optionen f{\"u}r den Klimaschutz}, series = {Der UN - Weltklimareport. Bericht {\"u}ber eine aufhaltsame Katastrophe}, booktitle = {Der UN - Weltklimareport. Bericht {\"u}ber eine aufhaltsame Katastrophe}, publisher = {Kiepenheuer und Witsch}, address = {K{\"o}ln}, isbn = {978-3462039603}, pages = {268 -- 280}, language = {de} } @article{EdenhoferFlachslandBruckner, author = {Edenhofer, Ottmar and Flachsland, Christian and Bruckner, Thomas}, title = {Deutschlands Beitrag zur L{\"o}sung des Weltklimaproblems - Was l{\"a}sst sich erreichen ?}, series = {Ifo Schnelldienst}, journal = {Ifo Schnelldienst}, number = {60. Jahrgang}, pages = {22 -- 26}, language = {de} } @techreport{Edenhofer, type = {Working Paper}, author = {Edenhofer, Ottmar}, title = {Euro - CASE Policy Position Paper. Reform Options for the European Em issions Trading System (EU ETS)}, language = {en} } @techreport{EdenhoferSternBauer, type = {Working Paper}, author = {Edenhofer, Ottmar and Stern, Nicholas and Bauer, Nico}, title = {Towards a Global Green Recovery. Recommendations for Immediate G20 Action. Report submitted to the G20 London Summit}, language = {en} } @techreport{EdenhoferCarraroHourcadeetal., type = {Working Paper}, author = {Edenhofer, Ottmar and Carraro, Carlo and Hourcade, Jean-Charles and Flachsland, Christian}, title = {RECIPE - The Economics of Decarbonization. Synthesis Report}, language = {en} } @article{UeckerdtHirthLudereretal., author = {Ueckerdt, Falko and Hirth, Lion and Luderer, Gunnar and Edenhofer, Ottmar}, title = {System LCOE: What are the costs of variable renewables?}, series = {Energy}, volume = {63}, journal = {Energy}, publisher = {Elsevier Ltd}, issn = {0360-5442}, doi = {10.1016/j.energy.2013.10.072}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:b1570-opus4-22942}, pages = {61 -- 75}, abstract = {Levelized costs of electricity (LCOE) are a common metric for comparing power generating technologies. However, there is criticism particularly towards evaluating variable renewables like wind and solar PV power based on LCOE because it ignores variability and integration costs. We propose a new metric System LCOE that accounts for integration and generation costs. For this purpose we develop a new mathematical definition of integration costs that directly relates to economic theory. As a result System LCOE allow the economic comparison of generating technologies and deriving optimal quantities in particular for VRE. To demonstrate the new concept we quantify System LCOE from a simple power system model and literature values. We find that at high wind shares integration costs can be in the same range as generation costs of wind power and conventional plants in particular due to a cost component "profile costs" captured by the new definition. Integration costs increase with growing wind shares and might become an economic barrier to deploying VRE at high shares. System LCOE help understanding and resolving the challenge of integrating VRE and can guide research and policy makers in realizing a cost-efficient transformation towards an energy system with potentially high shares of variable renewables.}, language = {en} } @article{EdenhoferHirthKnopfetal., author = {Edenhofer, Ottmar and Hirth, Lion and Knopf, Brigitte and Pahle, Michael and Schl{\"o}mer, Steffen and Schmid, Eva and Ueckerdt, Falko}, title = {On the Economics of Renewable Energy Sources}, series = {Energy Economics}, volume = {40}, journal = {Energy Economics}, number = {S1}, issn = {0140-9883}, doi = {10.1016/j.eneco.2013.09.015}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:b1570-opus4-22965}, pages = {S12 -- S23}, abstract = {With the global expansion of renewable energy (RE) technologies, the provision of optimal RE policy packages becomes an important task. We review pivotal aspects regarding the economics of renewables that are relevant to the design of an optimal RE policy, many of which are to date unresolved. We do so from three interrelated perspectives that a meaningful public policy framework for inquiry must take into account. First, we explore different social objectives justifying the deployment of RE technologies, including potential co-benefits of RE deployment, and review modelbased estimates of the economic potential of RE technologies, i.e. their socially optimal deployment level. Second, we address pivotal market failures that arise in the course of implementing the economic potential of RE sources in decentralized markets. Third, we discuss multiple policy instruments curing these market failures. Our framework reveals the requirements for an assessment of the relevant options for real-world decision makers in the field of RE policies. This review makes it clear that there are remaining white areas on the knowledge map concerning consistent and socially optimal RE policies.}, language = {en} } @article{HirthUeckerdtEdenhofer, author = {Hirth, Lion and Ueckerdt, Falko and Edenhofer, Ottmar}, title = {Integration Costs Revisited - An economic framework for wind and solar variability}, series = {Renewable Energy}, volume = {74}, journal = {Renewable Energy}, publisher = {Elsevier Ltd}, issn = {0960-1481}, doi = {10.1016/j.renene.2014.08.065}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:b1570-opus4-22878}, pages = {925 -- 939}, abstract = {The integration of wind and solar generators into power systems causes "integration costs" - for grids, balancing services, more flexible operation of thermal plants, and reduced utilization of the capital stock embodied in infrastructure, among other things. This paper proposes a framework to analyze and quantify these costs. We propose a definition of integration costs based on the marginal economic value of electricity, or market value - as such a definition can be more easily used in economic cost-benefit assessment than previous approaches. We suggest decomposing integration costs intro three components, according to the principal characteristics of wind and solar power: temporal variability, uncertainty, and location-constraints. Quantitative estimates of these components are extracted from a review of 100 + published studies. At high penetration rates, say a wind market share of 30-40\%, integration costs are found to be 25-35 €/MWh, i.e. up to 50\% of generation costs. While these estimates are system-specific and subject to significant uncertainty, integration costs are certainly too large to be ignored in high-penetration assessments (but might be ignored at low penetration). The largest single factor is reduced utilization of capital embodied in thermal plants, a cost component that has not been accounted for in most previous integration studies.}, language = {en} } @article{HirthUeckerdtEdenhofer, author = {Hirth, Lion and Ueckerdt, Falko and Edenhofer, Ottmar}, title = {Why Wind is not Coal: On the Economics of Electricity Generation}, series = {The Energy Journal}, volume = {37}, journal = {The Energy Journal}, number = {3}, issn = {1944-9089}, doi = {10.5547/01956574.37.3.lhir}, url = {http://nbn-resolving.de/urn:nbn:de:kobv:b1570-opus4-22828}, pages = {1 -- 27}, abstract = {Electricity is a paradoxical economic good: it is highly homogeneous and heterogeneous at the same time. Electricity prices vary dramatically between moments in time, between location, and according to lead-time between contract and delivery. This three-dimensional heterogeneity has implication for the economic assessment of power generation technologies: different technologies, such as coal-fired plants and wind turbines, produce electricity that has, on average, a different economic value. Several tools that are used to evaluate generators in practice ignore these value differences, including "levelized electricity costs", "grid parity", and simple macroeconomic models. This paper provides a rigorous and general discussion of heterogeneity and its implications for the economic assessment of electricity generating technologies. It shows that these tools are biased, specifically, they tend to favor wind and solar power over dispatchable generators where these renewable generators have a high market share. A literature review shows that, at a wind market share of 30-40\%, the value of a megawatt-hour of electricity from a wind turbine can be 20-50\% lower than the value of one megawatt-hour as demanded by consumers. We introduce "System LCOE" as one way of comparing generation technologies economically.}, language = {en} } @article{MinxCallaghanLambetal., author = {Minx, Jan C. and Callaghan, Max W. and Lamb, William F. and Garard, Jennifer and Edenhofer, Ottmar}, title = {Learning about climate change solutions in the IPCC and beyond}, series = {Environmental science \& policy}, journal = {Environmental science \& policy}, publisher = {Elsevier}, address = {Amsterdam [u.a.]}, issn = {1462-9011}, doi = {10.1016/j.envsci.2017.05.014}, language = {en} } @article{EdenhoferFlachslandKornek, author = {Edenhofer, Ottmar and Flachsland, Christian and Kornek, Ulrike}, title = {Der Grundriss f{\"u}r ein neues Klimaregime}, series = {ifo Schnelldienst}, volume = {69}, journal = {ifo Schnelldienst}, number = {3}, issn = {0018-974X}, pages = {11 -- 15}, language = {de} } @article{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Laudato si'. Die Sorge um die globalen Gemeinschaftsg{\"u}ter}, series = {Stimmen der Zeit}, volume = {233}, journal = {Stimmen der Zeit}, number = {9}, issn = {0039-1492}, pages = {579 -- 591}, language = {de} } @incollection{EdenhoferKadnerVonStechowetal., author = {Edenhofer, Ottmar and Kadner, Susanne and Von Stechow, Christoph and Minx, Jan C.}, title = {Beyond the 2°C limit: Facing the economic und technological challenges}, series = {Towards a Workable und Effective Climate Regime}, booktitle = {Towards a Workable und Effective Climate Regime}, publisher = {CEPR Press}, isbn = {978-1-907142-95-6}, pages = {49 -- 68}, language = {en} } @incollection{EdenhoferKadnerMinx, author = {Edenhofer, Ottmar and Kadner, Susanne and Minx, Jan C.}, title = {Ist das Zwei-Grad-Ziel w{\"u}nschenswert und ist es noch erreichbar? Der Beitrag der Wissenschaft zu einer politischen Debatte}, series = {Die Zukunft des Klimas : neue Erkenntnisse, neue Herausforderungen ; ein Report der Max-Planck-Gesellschaft}, booktitle = {Die Zukunft des Klimas : neue Erkenntnisse, neue Herausforderungen ; ein Report der Max-Planck-Gesellschaft}, publisher = {C.H.Beck}, address = {M{\"u}nchen}, isbn = {978-3406669675}, pages = {69 -- 92}, language = {de} } @incollection{EdenhoferFlachslandLorentz, author = {Edenhofer, Ottmar and Flachsland, Christian and Lorentz, Bernhard}, title = {Die Atmosph{\"a}re als globales Gemeingut}, series = {Commons. F{\"u}r eine neue Politik jenseits von Markt und Staat}, booktitle = {Commons. F{\"u}r eine neue Politik jenseits von Markt und Staat}, publisher = {Transcript}, isbn = {978-3837620368}, pages = {473 -- 478}, language = {de} } @incollection{EdenhoferFlachslandLorentz, author = {Edenhofer, Ottmar and Flachsland, Christian and Lorentz, Bernhard}, title = {The Atmosphere as a Global Commons}, series = {The Wealth of the Commons. A World beyond Market and State}, booktitle = {The Wealth of the Commons. A World beyond Market and State}, publisher = {Levellers Press}, language = {en} } @incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Globale Energiewende - Wege zu einer nachhaltigen Energieversorgung}, series = {Globale Trends 2013. Frieden, Entwicklung, Umwelt}, booktitle = {Globale Trends 2013. Frieden, Entwicklung, Umwelt}, publisher = {Fischer Taschenbuch Verlag}, address = {Frankfurt am Main}, isbn = {978-3596194230}, pages = {265 -- 284}, language = {de} } @incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Transforming the Global Energy System - Pathways Towards a Sustainable Energy Supply}, series = {Global Trends 2013. Peace - Development - Environment}, booktitle = {Global Trends 2013. Peace - Development - Environment}, publisher = {Stiftung Entwicklung und F rieden (SEF)}, address = {Bonn}, pages = {53 -- 71}, language = {en} } @article{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Die Nutzung globaler Gemeinschaftsg{\"u}ter: Polit{\"o}konomische Heraus forderungen an die Klimapolitik}, series = {ifo Schnelldienst}, volume = {12}, journal = {ifo Schnelldienst}, number = {65}, pages = {29 -- 35}, language = {de} } @article{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Die Nutzung globaler Gemeinschaftsg{\"u}ter: Polit{\"o}konomische Herausforderungen an die Klimapolitik.}, series = {Die Zukunft der Energieversorgung: Atomausstieg, Versorgungssicherhei t und Klimawandel. 2012. Rundgespr{\"a}che der Kommission f{\"u}r {\"O}kologie}, journal = {Die Zukunft der Energieversorgung: Atomausstieg, Versorgungssicherhei t und Klimawandel. 2012. Rundgespr{\"a}che der Kommission f{\"u}r {\"O}kologie}, number = {41}, editor = {Bayer. Akademie der Wissenschaften,}, pages = {137 -- 151}, language = {de} } @article{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Wem geh{\"o}rt die Atmosph{\"a}re? Nach dem Klimagipfel in Canc{\´u}n}, series = {Stimmen der Zeit}, journal = {Stimmen der Zeit}, number = {2}, pages = {75 -- 88}, language = {de} } @incollection{EdenhoferFlachslandLuderer, author = {Edenhofer, Ottmar and Flachsland, Christian and Luderer, Gunnar}, title = {Global Deal: Eckpunkte einer globalen Klimaschutzpolitik.}, series = {Klimawandel und globale Armut}, booktitle = {Klimawandel und globale Armut}, publisher = {Kohlhammer}, address = {Stuttgart}, language = {de} } @incollection{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Der 'Global Deal' f{\"u}r den Klimaschutz - ein Pfad auf des Messers Schneide}, series = {Energiegeladen. Koordinaten einer zukunftsf{\"a}higen Klima - und Energiepolitik}, booktitle = {Energiegeladen. Koordinaten einer zukunftsf{\"a}higen Klima - und Energiepolitik}, publisher = {Ch. Goetz Verlag}, address = {Potsdam}, isbn = {9783980934947}, language = {de} } @article{EdenhoferFlachsland, author = {Edenhofer, Ottmar and Flachsland, Christian}, title = {Der Friedensnobelpreis f{\"u}r den Weltklimarat}, series = {Stimmen der Zeit}, journal = {Stimmen der Zeit}, number = {2}, pages = {75 -- 86}, language = {de} } @article{SteckelJakobFlachslandetal., author = {Steckel, Jan Christoph and Jakob, Michael and Flachsland, Christian and Kornek, Ulrike and Lessmann, Kai and Edenhofer, Ottmar}, title = {From climate finance towards sustainable development finance}, series = {WIREs Climate Change}, volume = {8}, journal = {WIREs Climate Change}, number = {1}, doi = {10.1002/wcc.437}, pages = {8}, abstract = {Decarbonizing the global energy system requires large-scale investment flows, with a central role for international climate finance to mobilize private funds. The willingness to provide international finance in accordance with common but differentiated responsibilities was acknowledged by the broad endorsement of the Paris Agreement, and the Green Climate Funds in particular. The international community aims to mobilize at least USD 100 billion per year for mitigation and adaption in developing countries. In this article, we argue that too little attention has been paid on the spending side of climate finance, both in the political as well as the academic debate. To this end, we review the challenges encountered in project-based approaches of allocating climate finance in the past. In contrast to project-based finance, we find many advantages to spending climate finance in support of price-based national policies. First, the support for international climate cooperation is improved when efforts of successively rising domestic carbon pricing levels are compensated. Second, carbon pricing sets incentives for least-cost mitigation. Third, investing domestic revenues from emission pricing schemes could advance a country's individual development goals and ensure the recipient's 'ownership' of climate policies. We conclude that by reconciling the global goal of cost-efficient mitigation with national policy priorities, climate finance for carbon pricing could become a central pillar of sustainable development and promote international cooperation to achieve the climate targets laid down in the Paris Agreement.}, language = {en} } @article{vonStechowMcCollumRiahietal., author = {von Stechow, Christoph and McCollum, David and Riahi, Keywan and Minx, Jan C. and Kriegler, Elmar and van Vuuren, Detlef P. and Jewell, Jessica and Robledo-Abad, Carmenza and Hertwich, Edgar and Tavoni, Massimo and Mirasgedis, Sevastianos and Lah, Oliver and Roy, Joyashree and Mulugetta, Yacob and Dubash, Navroz K. and Bollen, Johannes and {\"U}rge-Vorsatz, Diana and Edenhofer, Ottmar}, title = {Integrating climate change mitigation with other sustainability objectives: an assessment}, series = {Annual Reviews of the Environment and Resources}, volume = {40}, journal = {Annual Reviews of the Environment and Resources}, doi = {10.1146/annurev-environ-021113-095626}, pages = {363 -- 394}, language = {en} } @incollection{FlachslandEdenhoferKornek, author = {Flachsland, Christian and Edenhofer, Ottmar and Kornek, Ulrike}, title = {Koordinierte CO2-Preise : Ein Vorschlag zur Weiterentwicklung des Pariser Abkommens}, series = {Unter 2 Grad? Was der Weltklimavertrag wirklich bringt}, booktitle = {Unter 2 Grad? Was der Weltklimavertrag wirklich bringt}, editor = {M{\"u}ller, Michael and Sommer, J{\"o}rg}, publisher = {Hirzel}, address = {Stuttgart}, isbn = {978-3-7776-2570-6}, pages = {69 -- 78}, abstract = {Im Dezember 2015 wurde in Paris Geschichte geschrieben: Die Weltklimakonferenz einigte sich auf das erste Klimaschutzabkommen, das alle L{\"a}nder in die Pflicht nimmt. Damit bekennt sich die Weltgemeinschaft v{\"o}lkerrechtlich verbindlich zum Ziel, die Erderw{\"a}rmung auf unter zwei Grad zu begrenzen. Doch was ist dieses Paris-Abkommen wert? Wo liegen seine St{\"a}rken, welche Herausforderungen kommen auf die Weltgemeinschaft zu? Welche Risiken birgt es? Was muss jetzt politisch folgen? Expertinnen und Experten aus Wissenschaft, Politik, Medien und NGOs analysieren in diesem Buch Hintergr{\"u}nde, Inhalte und Konsequenzen des neuen Weltklimavertrages.}, language = {de} } @article{PahleBurtrawFlachslandetal., author = {Pahle, Michael and Burtraw, Dallas and Flachsland, Christian and Kelsey, Nina and Meckling, Jonas and Biber, Eric and Edenhofer, Ottmar and Zysman, John}, title = {Sequencing to ratchet up climate policy stringency}, series = {Nature Climate Change}, volume = {8}, journal = {Nature Climate Change}, issn = {1758-6798}, doi = {10.1038/s41558-018-0287-6}, pages = {861 -- 867}, abstract = {The Paris Agreement formulates the goal of GHG neutrality in the second half of this century. Given that Nationally Determined Contributions are as yet insufficient, the question is through which policies can this goal be realized? Identifying policy pathways to ratchet up stringency is instrumental, but little guidance is available. We propose a policy sequencing framework and substantiate it using the cases of Germany and California. Its core elements are policy options to overcome barriers to stringency over time. Such sequencing can advance policy design and hopefully reconcile the controversy between first-best and second-best approaches.}, language = {en} } @article{FussFlachslandKochetal., author = {Fuss, Sabine and Flachsland, Christian and Koch, Nicolas and Kornek, Ulrike and Knopf, Brigitte and Edenhofer, Ottmar}, title = {A Framework for Assessing the Performance of Cap-and-Trade Systems: Insights from the European Union Emissions Trading System}, series = {Review of Environmental Economics and Policy}, volume = {12}, journal = {Review of Environmental Economics and Policy}, number = {2}, issn = {1750-6816}, doi = {10.1093/reep/rey010}, pages = {220 -- 241}, abstract = {The performance of the European Union (EU) Emissions Trading System (ETS) and other cap-and-trade schemes has been under scrutiny because of their inability to create a stable price for greenhouse gas emissions. This article seeks to inform the often confusing debate about the economic performance of cap-and-trade systems over time, with a focus on the EU ETS. Based on a simple intertemporal framework of emissions trading and a review of the literature, we show that different frameworks and notions of efficiency result in both different assessments of performance and different recommended strategies for improving performance. More specifically, we argue that if cap-and-trade systems have temporal flexibility (i.e., they include banking and borrowing of emissions allowances), it can be highly misleading to base the economic assessment on short-term efficiency. We seek to draw attention to the concept of long-term economic performance, which takes into account the intertemporal nature of emissions trading systems. In particular, we identify market and government distortions (e.g., myopia, lack of policy credibility, excessive discounting) that may depress allowance prices and hamper intertemporal efficiency. We then examine whether the recently adopted Market Stability Reserve and the alternative price collar are likely to address these distortions.}, language = {en} } @incollection{EdenhoferFlachslandSchmid, author = {Edenhofer, Ottmar and Flachsland, Christian and Schmid, Lisa Katharina}, title = {Decarbonization and EU ETS Reform: Introducing a price floor to drive low-carbon investments}, series = {12 Years of European Emissions Trading in German}, booktitle = {12 Years of European Emissions Trading in German}, editor = {Angrick, Michael and K{\"u}hleis, Christoph and Landgrebe, J{\"u}rgen and Weiß, Jan}, publisher = {Metropolis}, address = {Marburg}, isbn = {978-3-7316-1375-6}, publisher = {Hertie School}, pages = {207 -- 232}, abstract = {The EU ETS is in a crisis. There is a fundamental concern that persistently low allowance prices will fail to incentivize the investments in low-carbon capital stock and technology research and development (R\&D) required to achieve long-term European decarbonization targets in the context of the Paris Agreement. Attainment of these targets is at risk. Introducing a carbon price floor can re-affirm the role of the EU ETS as the central pillar in the European effort towards decarbonization. Such a price floor should start at an economically significant level and rise over time. Many observers argue that it is misguided to focus on the EU ETS allowance (EUA) price, since the emissions cap determines environmental effectiveness and the allowance market works well in technical terms. Four interrelated considerations underpin our concern over the persistently low EUA price: First, the EU ETS cap is not cast in stone. It might be relaxed in the future if the costs of maintaining it become politically unacceptable. This could be the case if allowance prices escalate, which can be expected to result from a high-carbon capital stock building up in presence of persistently low allowance prices. Second, there is emerging scientific evidence that the EUA price is distorted as the carbon market does not operate cost-efficiently in a long-term perspective due to private sector short-sightedness and regulatory uncertainty. Third, the EU ETS has so far not allowed the effective expression of different climate policy preferences across EU member states. Without compensatory measures, voluntary unilateral emission reductions within member states (e.g. UK carbon price support, potential German coal power exit) dampen short-term allowance prices and shift emissions in space and time. Finally, all ambitious short-term climate policy measures required for embarking on long-term decarbonization pathways face significant political opposition. This opposition can be expected to come not only from reluctant EU member states, but also industry constituencies concerned about impacts on competitiveness, businessmodels and jobs. These distributional challenges need to be tackled more effectively by strategically allocating allowance value, providing limited compensation to adversely affected constituencies, promoting low carbon R\&D to reduce future costs of decarbonization, and fostering public support for ambitious climate policy. The recent EU ETS reform effort offers an entry point to tackle these concerns, but does not sufficiently address the underlying problems. The magnitude and direction of its impact on the EUA price is highly uncertain. More fundamental change will be required to reaffirm the role of the EU ETS as the central pillar of European decarbonization efforts. In particular, a carbon price floor that rises over time can provide a clearer policy signal for guiding short-and mid-term capital stock and technology R\&D investment decisions towards low-carbon options, and can thus enable cost-efficient achievement of long-term decarbonization targets. If designed accordingly, it allows member states with a higher preference for ambitious climate policy to effectively achieve additional emission reductions. In addition, targeted and transitory compensation models for particularly affected constituencies, and public investments into the development of new technologies and related business models will be required to ensure short-and long-term political support and reinforce policy credibility. Companion policies can play an important role in fostering low-carbon investment, but are inadequate substitutes to effective long-term carbon pricing. Ideally, a carbon price floor will be implemented at the EU-level. An alternative is to start with a coalition of countries including Germany (also in view of attaining its 2020 climate targets), France and others, and to expand it over time}, language = {en} } @article{EdenhoferKnopfBurghausetal., author = {Edenhofer, Ottmar and Knopf, Brigitte and Burghaus, Kerstin and Flachsland, Christian and Jakob, Michael and Koch, Nicolas}, title = {Shifting Paradigms in Carbon Pricing}, series = {Intereconomics}, volume = {53}, journal = {Intereconomics}, number = {3}, doi = {10.1007/s10272-018-0735-6}, pages = {135 -- 140}, abstract = {Carbon pricing is essential to achieve a reduction in global CO2 emissions. A carbon price can either be set directly via a carbon tax (price control) or be achieved through a cap-and-trade system (quantity control). While there has been much debate about the relative merits of each approach, cap-and-trade systems have been favoured in the political arena. In principle, they offer the most straightforward way to achieve a country's emission reduction target by simply setting the cap at the remaining emission budget. Existing emissions trading schemes (ETSs) can be found in Europe, California and Qu{\´e}bec, for example.}, language = {en} } @incollection{EdenhoferFlachslandSchmid, author = {Edenhofer, Ottmar and Flachsland, Christian and Schmid, Lisa Katharina}, title = {Wie der Emissionshandel wieder zur zentralen S{\"a}ule der europ{\"a}ischen Klimapolitik werden kann}, series = {12 Jahre Europ{\"a}ischer Emissionshandel in Deutschland: Bilanz und Perspektiven f{\"u}r einen wirkungsvollen Klimaschutz}, booktitle = {12 Jahre Europ{\"a}ischer Emissionshandel in Deutschland: Bilanz und Perspektiven f{\"u}r einen wirkungsvollen Klimaschutz}, editor = {Angrick, Michael and K{\"u}hleis, Christoph and Landgrebe, J{\"u}rgen and Weiß, Jan}, publisher = {metropolis}, address = {Marburg}, isbn = {978-3-7316-1362-6}, publisher = {Hertie School}, pages = {217 -- 244}, language = {de} } @incollection{DasguptaEdenhoferAmezquitaetal., author = {Dasgupta, Purnamita and Edenhofer, Ottmar and Amezquita, Adriana Mercedes Avendano and Bento, Antonio M. and Caney, Simon and De la Croix, David and Fosu, Augustin Kwasi and Jakob, Michael and Saam, Marianne and Shrader-Frechette, Kristin and Flachsland, Christian and Weyant, John and You, Liangzhi and Delgado-Ramos, Gian and Dorsch, Marcel J. and Klenert, David and Lempert, Robert and Leroux, Justin and Lessmann, Kai and Liu, Junguo and Mattauch, Linus and Perrings, Charles and Schwerhoff, Gregor and Seyboth, Kristin and Streckel, Jan}, title = {Economic Growth, Human Development, and Welfare}, series = {Rethinking Society for the 21st Century Report of the International Panel on Social Progress}, booktitle = {Rethinking Society for the 21st Century Report of the International Panel on Social Progress}, publisher = {Cambridge University Press}, isbn = {9781108399661}, doi = {10.1017/9781108399661}, publisher = {Hertie School}, pages = {139 -- 184}, abstract = {Economic Growth, Human Development, and Welfare" of the 2018 Report of the International Panel on Social Progress (IPSP). Mission of the IPSP: The International Panel on Social Progress (IPSP) will harness the competence of hundreds of experts about social issues and will deliver a report addressed to all social actors, movements, organizations, politicians and decision-makers, in order to provide them with the best expertise on questions that bear on social change. The Panel will seek consensus whenever possible but will not hide controversies and will honestly present up-to-date arguments and analyses, and debates about them, in an accessible way. The Panel will have no partisan political agenda, but will aim at restoring hope in social progress and stimulating intellectual and public debates. Different political and philosophical views may conceive of social progress in different ways, emphasizing values such as freedom, dignity, or equality. The Panel will retain full independence from political parties, governments, and organizations with a partisan agenda. While the Panel will primarily work for the dissemination of knowledge to all relevant actors in society, it will also foster research on the topics it will study and help to revive interest for research in social long-term prospective analysis}, language = {en} } @techreport{FlachslandPahleBurtrawetal., type = {Working Paper}, author = {Flachsland, Christian and Pahle, Michael and Burtraw, Dallas and Edenhofer, Ottmar and Elkerbout, Milan and Fischer, Carolyn and Tietjen, Oliver and Zetterberg, Lars}, title = {Five myths about an EU ETS carbon price floor}, abstract = {This policy briefbuilds on theworkshop EU ETS Reform: Taking Stock and Examining Carbon Price Floor Options,held at the Centrefor European Policy Studies (CEPS) in Brussels on July 3, 2018. The workshop was cosponsored by CEPS and the AHEAD and Mistra CarbonExit projects. While the brief draws on insights from workshop discussions, its views are solely those of the authors. The brief outlinesdifferent perspectives on thepast performanceof the EU Emissions Trading System (ETS)in terms of its allowance price (Section 1), analyzes how the recent reform respondedto related challenges(Section 2), and considers the case for introducinga carbon pricefloor in the EU ETS(Section 3). The main part of the brief (Section 4) identifies five myths in the debate of an EU ETSpricefloorand criticallyconfrontsthem. Section 5 concludes by discussing potential entry points for introducing a carbon price floor in the context of the upcoming EU climate policy process}, language = {en} } @techreport{EdenhoferFlachslandKalkuhletal., type = {Working Paper}, author = {Edenhofer, Ottmar and Flachsland, Christian and Kalkuhl, Matthias and Knopf, Brigitte and Pahle, Michael}, title = {Optionen f{\"u}r eine CO2-Preisreform. MCC-PIK-Expertise f{\"u}r den Sachverst{\"a}ndigenrat zur Begutachtung der gesamtwirtschaftlichen Entwicklung}, series = {ECONSTOR}, journal = {ECONSTOR}, edition = {04/2019}, pages = {106}, abstract = {Die deutsche Klimapolitik ben{\"o}tigt eine grundlegende Neuausrichtung. Deutschland muss im Rahmen der EU-Lastenteilungsverordnung bis 2030 seine Emissionen im Verkehrs-, Geb{\"a}ude- und Landwirtschaftssektor sowie in Teilen des Industrie- und Energiesektors um 38 Prozent gegen{\"u}ber 2005 vermindern, sonst drohen erhebliche Strafzahlungen. Das erfordert einen deutlich steileren CO2-Reduktionspfad als in den vergangenen Jahren. Die Regierung plant daher, bis zum Ende des Jahres ein Klimaschutzgesetz zu verabschieden. Mit der aktuellen Ausrichtung von Energiewende und Klimapolitik kann dieses Ziel allerdings nicht erreicht werden, weil die bestehenden {\"o}konomischen Anreize unzureichend sind und f{\"u}r Investoren und Innovatoren erhebliche Unsicherheiten {\"u}ber die zuk{\"u}nftige Ausrichtung der Klimapolitik bestehen. Außerdem sind die bisherigen Maßnahmen sozial unausgewogen. Der klimapolitische Rahmen muss dringend auf das zentrale Ziel ausgerichtet werden, also das Vermeiden von CO2-Emissionen. Der CO2-Preis sollte zum Leitinstrument der Klimapolitik werden. Gleichzeitig w{\"a}chst die Unzufriedenheit mit dem unzureichenden klimapolitischen Fortschritt in breiten Teilen der Gesellschaft: Die nationalen Klimaziele f{\"u}r 2020 werden verfehlt. Die Jugend, prominent vertreten durch die „Fridays for Future"-Bewegung, sieht die Lebensgrundlagen ihrer eigenen und k{\"u}nftiger Generationen in Gefahr. Klimaschutz ist zu einem zentralen Thema in der Mitte der Gesellschaft geworden. Daraus ist ein unmittelbarer klimapolitischer Handlungsdruck entstanden, der f{\"u}r eine umfassende Reform der Klimapolitik genutzt werden sollte. Die n{\"o}tigen Reformen lassen sich nur durch einen Paradigmenwechsel erreichen, bei dem auch die Umwelt- und Klimapolitik an den grundlegenden Prinzipien der Sozialen Marktwirtschaft ausgerichtet wird. Dabei gilt es den Wettbewerb um die g{\"u}nstigsten Vermeidungstechnologien zu f{\"o}rdern, Investitionssicherheit zu st{\"a}rken, die Gesamtkosten f{\"u}r die Erreichung der Ziele m{\"o}glichst gering zu halten und die Belastungen gerecht {\"u}ber Haushalte und Unternehmen zu verteilen. Ordnungsrecht und F{\"o}rderprogramme sollten k{\"u}nftig nur eine erg{\"a}nzende Rolle einnehmen. Im Zentrum der Neuausrichtung muss eine umfassende und koordinierte Bepreisung der CO2-Emissionen stehen. Die Ausgestaltung einer deutschen CO2-Preisreform sollte von Beginn an als Dreiklang gedacht werden: Erstens muss der Konvergenzpunkt eine europaweit harmonisierte CO2-Bepreisung sein. Zweitens sollte Deutschland als Zwischenschritt z{\"u}gig eine nationale CO2-Preisreform umsetzen, um seine Ziele im Rahmen der EU-Lastenteilungsverordnung zu erreichen. Drittens sollte die europ{\"a}ische CO2-Preisreform Grundlage f{\"u}r erfolgreiche internationale Klimaverhandlungen werden. Mit dieser Reform haben Deutschland und Europa die Chance, nicht nur die europ{\"a}ische Klimapolitik voranzubringen, sondern auch ihre Position in den internationalen Verhandlungen zu verbessern.}, language = {de} } @article{PahleEdenhoferPietzckeretal., author = {Pahle, Michael and Edenhofer, Ottmar and Pietzcker, Robert and Tietjen, Oliver and Osorio, Sebastian and Flachsland, Christian}, title = {Die untersch{\"a}tzten Risiken des Kohleausstiegs}, series = {Energiewirtschaftliche Tagesfragen}, volume = {69}, journal = {Energiewirtschaftliche Tagesfragen}, number = {6}, pages = {1 -- 4}, language = {de} } @article{FlachslandPahleBurtrawetal., author = {Flachsland, Christian and Pahle, Michael and Burtraw, Dallas and Edenhofer, Ottmar and Elkerbout, Milan and Fischer, Carolyn and Tietjen, Oliver and Zetterberg, Lars}, title = {How to avoid history repeating itself: the case for an EU Emissions Trading System (EU ETS) price floor revisited}, series = {Climate Policy}, volume = {20}, journal = {Climate Policy}, number = {1}, doi = {10.1080/14693062.2019.1682494}, pages = {133 -- 142}, abstract = {Several years of very low allowance prices in the EU emissions trading scheme (ETS) have motivated calls to introduce a price floor to correct potential underlying distortions and design flaws, including (i) the political nature of allowance supply and related credibility issues, (ii) potential myopia of market participants and firms, and (iii) waterbed and rebound effects resulting from policy interactions. In the wake of the recent EU ETS reform, allowance prices have sharply increased. This raises the question of whether the case for introducing a price floor in the EU ETS remains valid. We argue that such a price floor, also adopted in several other greenhouse gas cap-and-trade systems worldwide, remains an important improvement in the design of the system, as long as the above-mentioned distortions and design flaws persist. An EU ETS price floor can safeguard against these issues and provides more explicit guidance on the minimum allowance price policymakers consider acceptable. Either as a complement or substitute to the current Market Stability Reserve (MSR), a price floor would thus make the EU ETS less prone to future revision in case of unexpectedly low prices. We identify and confront four prominent arguments against the introduction of an EU ETS price floor. Key policy insights: - An EU ETS price floor would be an important institutional innovation enhancing political and economic stability, and predictability of the EUA price - The recent Market Stability Reserve (MSR) reform has not removed the need for a carbon price floor. - Introducing an element of price responsiveness into the so far purely quantitative design of the EU ETS would help to preserve its integrity - In contrast to conventional wisdom, legal analysis reveals that an EU ETS price floor can be legally feasible - Political support for a carbon price floor is gaining traction across Europe}, language = {en} } @techreport{EdenhoferFlachslandKalkuhletal., type = {Working Paper}, author = {Edenhofer, Ottmar and Flachsland, Christian and Kalkuhl, Matthias and Knopf, Brigitte and Pahle, Michael}, title = {Bewertung des Klimapakets und n{\"a}chste Schritte. CO2-Preis, sozialer Ausgleich, Europa, Monitoring}, publisher = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH}, pages = {1-16}, abstract = {Das von der Bundesregierung vorgelegte Klimapaket wird aller Voraussicht nach unzureichend sein, um die Ziele f{\"u}r 2030 zu erreichen. Zwar wird eine sinnvolle Architektur f{\"u}r eine umfassende CO2-Bepreisung sichtbar: Einstieg mit einem Fixpreis, mittelfristig ein nationaler Emissionshandel f{\"u}r W{\"a}rme und Verkehr und langfristig Integration in den EU-Emissionshandel mit einem Mindestpreis. Aber der Preispfad ist zu niedrig und reicht nicht weit genug in die Zukunft, um eine ausreichende Lenkungswirkung zu entfalten und die notwendige Sicherheit f{\"u}r Investitionen zu vermitteln. So wie der Preispfad jetzt festgeschrieben worden ist, sind nach 2026 voraussichtlich erhebliche Preissteigerungen zur Zielerreichung n{\"o}tig. Dadurch wird das Erreichen der 2030er-Ziele unn{\"o}tig teuer. Weiterhin besteht das Risiko, dass der Preispfad mittelfristig (2022 bis 2025) wom{\"o}glich schon zu einem Verletzen der EU-Lastenteilungsziele f{\"u}hrt. Auch die Frage des sozialen Ausgleichs in der deutschen Klimapolitik ist noch nicht befriedigend gel{\"o}st. Es zeigt sich, dass die Mittelschicht am st{\"a}rksten belastet wird, w{\"a}hrend die Belastung f{\"u}r {\"a}rmere Haushalte zwar abgefedert wird, der Ausgleich aber noch unzureichend ist: Gerade hier treten besondere H{\"a}rtef{\"a}lle auf. Die soziale Schieflage versch{\"a}rft sich dramatisch bei steigenden CO2-Preisen, die ab 2026 zu erwarten sind. Es kommt nun darauf an, in den n{\"a}chsten Schritten nachzusteuern: Der CO2-Preispfad sollte auf ein Ambitionsniveau angehoben werden, mit dem die Klimaziele zuverl{\"a}ssig erreicht werden k{\"o}nnen. Außerdem m{\"u}ssen die klimapolitischen Instrumente sozialvertr{\"a}glich ausgestaltet werden. Weiterhin ist eine aktivere Rolle Deutschlands in der europ{\"a}ischen Klimapolitik entscheidend. Denn parallel zum nationalen Einstieg sollte Deutschland die Einf{\"u}hrung einer integrierten europaweiten CO2-Bepreisung vorantreiben, um eine dauerhafte Zersplitterung und entsprechend hohe Kosten der europ{\"a}ischen Klimapolitik zu verhindern. Die europ{\"a}ische Klimadebatte um eine Erh{\"o}hung des Klimaziels f{\"u}r das Jahr 2030, angestoßen durch die neue EU-Kommission, bietet daf{\"u}r in der kommenden Zeit einen guten Einstiegspunkt. Zentral ist zudem ein effektiver Monitoringprozess. Dabei sollte der einberufene Expertenrat nicht nur das Ex-post-Monitoring der Emissionen unterst{\"u}tzen, sondern auch ein Vorschlagsrecht f{\"u}r das Nach-steuern von Maßnahmen zur Zielerreichung haben (Ex-ante-Evaluierung alternativer Optionen). Auch eine Berichtspflicht gegen{\"u}ber dem Bundestag w{\"a}re wichtig, um Transparenz {\"u}ber den Fortschritt bei der Zielerreichung herzustellen. Der jetzt aufgesetzte Expertenrat hat dagegen nur ein schwaches Mandat zur bloßen {\"U}berpr{\"u}fung von Daten und Modellannahmen. Doch das Gremium sollte nicht bloß den Fortschritt hinsichtlich der Klimaziele notariell best{\"a}tigen, sondern der Schrittmacher f{\"u}r deren Umsetzung sein. Hier wurde es verpasst, eine starke Institution zu schaffen.}, language = {de} } @incollection{EdenhoferRoolfsGaitanetal., author = {Edenhofer, Ottmar and Roolfs, Christiana and Gaitan, Beatriz and Nahmacher, Paul and Flachsland, Christian}, title = {Agreeing on an EU ETS minimum price to foster solidarity, subsidiarity and efficiency in the EU}, series = {Energy Tax and Regulatory Policy in Europe: Reform Priorities}, booktitle = {Energy Tax and Regulatory Policy in Europe: Reform Priorities}, editor = {Parry (et al.), Ian}, publisher = {MIT Press}, address = {Cambridge, MA}, publisher = {Hertie School}, pages = {31 -- 61}, language = {en} } @techreport{KalkuhlRoolfsEdenhoferetal., type = {Working Paper}, author = {Kalkuhl, Matthias and Roolfs, Christina and Edenhofer, Ottmar and Haywood, Luke and Heinemann, Maik and Bekk, Anke and Flachsland, Christian and George, Jan and Held, Anne and aus dem Moore, Nils and Luderer, Gunnar and Koch, Nicolas and Nikodinoska, Dragana and Pahle, Michael and Schill, Wolf-Peter and Amberg, Maximilian and Bergmann, Tobias and Meyer, Henrika}, title = {Reformoptionen f{\"u}r ein nachhaltiges Steuer- und Abgabensystem. Wie Lenkungssteuern effektiv und gerecht f{\"u}r den Klima- und Umweltschutz ausgestaltet werden k{\"o}nnen. Ein Ariadne-Kurzdossier.}, pages = {23}, language = {de} } @techreport{KalkuhlFlachslandKnopfetal., 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: sozialpolitische Herausforderungen und Handlungsoptionen}, organization = {Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH}, pages = {1-37}, language = {de} }