@article{OhlendorfFlachslandNemetetal., author = {Ohlendorf, Nils and Flachsland, Christian and Nemet, Gregory F. and Steckel, Jan Christoph}, title = {Carbon price floors and low-carbon investment: A survey of German firms}, series = {Energy Policy}, volume = {169}, journal = {Energy Policy}, number = {113187}, issn = {0301-4215}, doi = {10.1016/j.enpol.2022.113187}, abstract = {Introducing a price floor in emissions trading schemes (ETS) theoretically stabilizes expectations on future carbon prices and thus fosters low-carbon investment. Yet, ex post evidence on high carbon prices is scant and the relevance of carbon pricing for investment decisions is frequently contested. We provide empirical ex ante evidence on how a price floor in the EU ETS would impact the size and portfolio of energy firms' investments. Analyzing survey responses of high-level managers in 113 German energy and industry companies, we find that the level of the price floor is crucial. A low price floor trajectory only provides insurance against downward price fluctuations and would leave investments largely unchanged except for industries receiving electricity price compensation, which reduce their investments. A high floor, significantly increasing the price level beyond current expectations, leads to higher investment by the majority of firms, especially by green firms, while investment in fossil energy would partially be abolished. Our studies implies that price floors can be important design components of ETS. However, policymakers need to ensure that they are at sufficiently high levels to affect investment decisions in a meaningful way.}, language = {en} } @article{DoebbelingHildebrandtMierschKhannaetal., author = {D{\"o}bbeling-Hildebrandt, Niklas and Miersch, Klaas and Khanna, Tarun M. and Bachelet, Marion and Bruns, Stephan B. and Callaghan, Max and Edenhofer, Ottmar and Flachsland, Christian and Forster, Piers M. and Kalkuhl, Matthias and Koch, Nicolas and Lamb, William F. and Ohlendorf, Nils and Steckel, Jan Christoph and Minx, Jan C.}, title = {Systematic review and meta-analysis of ex-post evaluations on the effectiveness of carbon pricing}, series = {Nature Communications}, volume = {15}, journal = {Nature Communications}, publisher = {Springer Science and Business Media LLC}, issn = {2041-1723}, doi = {10.1038/s41467-024-48512-w}, abstract = {Today, more than 70 carbon pricing schemes have been implemented around the globe, but their contributions to emissions reductions remains a subject of heated debate in science and policy. Here we assess the effectiveness of carbon pricing in reducing emissions using a rigorous, machine-learning assisted systematic review and meta-analysis. Based on 483 effect sizes extracted from 80 causal ex-post evaluations across 21 carbon pricing schemes, we find that introducing a carbon price has yielded immediate and substantial emission reductions for at least 17 of these policies, despite the low level of prices in most instances. Statistically significant emissions reductions range between -5\% to -21\% across the schemes (-4\% to -15\% after correcting for publication bias). Our study highlights critical evidence gaps with regard to dozens of unevaluated carbon pricing schemes and the price elasticity of emissions reductions. More rigorous synthesis of carbon pricing and other climate policies is required across a range of outcomes to advance our understanding of "what works" and accelerate learning on climate solutions in science and policy.}, language = {en} }