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A whole-economy carbon price for Europe and how to get there

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Listed:
  • Ottmar Edenhofer
  • Mirjam Kosch
  • Michael Pahle
  • Georg Zachmann

Abstract

The European Union’s plan for climate neutrality by 2050 reopens the question of the role carbon pricing can and should play. Carbon pricing should not – and ultimately cannot – only be an enforcement tool or backstop that ensures targets are met, while the heavy-lifting of decarbonisation comes from directed technological change policies. Instead, a technologyneutral carbon price must become the main element, providing signals for decarbonised operations, investment and...

Suggested Citation

  • Ottmar Edenhofer & Mirjam Kosch & Michael Pahle & Georg Zachmann, 2021. "A whole-economy carbon price for Europe and how to get there," Bruegel Policy Contributions 41514, Bruegel.
    • Handle: RePEc:bre:polcon:41514
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    References listed on IDEAS

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    1. Simon Quemin & Christian Perthuis, 2019. "Transitional Restricted Linkage Between Emissions Trading Schemes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(1), pages 1-32, September.
    2. repec:diw:diwwpp:dp1714 is not listed on IDEAS
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    Cited by:

    1. Estelle Cantillon & Aurélie Slechten, 2024. "Market Design for the Environment," NBER Chapters, in: New Directions in Market Design, National Bureau of Economic Research, Inc.
    2. Mengrui Zhu & Hua Xu & Xingyu Gao & Minggang Wang & André L. M. Vilela & Lixin Tian, 2022. "Identification of Breakpoints in Carbon Market Based on Probability Density Recurrence Network," Energies, MDPI, vol. 15(15), pages 1-18, July.
    3. Qu, Xinwei & Tian, Mingfu & Zhang, Linbo & Huang, Hongyun & Sun, Di & Song, Malin, 2025. "Energy structural change towards net-zero economy: What can we learn from carbon finance initiatives in China?," Energy Economics, Elsevier, vol. 144(C).
    4. Javed, Muhammad Shahzad & Jurasz, Jakub & Dąbek, Paweł Bronisław & Ma, Tao & Jadwiszczak, Piotr & Niemierka, Elżbieta, 2023. "Green manufacturing facilities – Meeting CO2 emission targets considering power and heat supply," Applied Energy, Elsevier, vol. 350(C).
    5. Pahle, Michael & Quemin, Simon & Osorio, Sebastian & Günther, Claudia & Pietzcker, Robert, 2025. "The emerging endgame: The EU ETS on the road towards climate neutrality," Resource and Energy Economics, Elsevier, vol. 81(C).

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