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Industrial decarbonisation in a fragmented world: an effective carbon price with a ‘climate contribution’

Author

Listed:
  • Neuhoff, Karsten
  • Sato, Misato
  • Ballesteros, Fernanda
  • Böhringer, Christoph
  • Borghesi, Simone
  • Cosbey, Aaron
  • Das, Katsuri
  • Ismer, Roland
  • Johnston, Angus
  • Linares, Pedro
  • Matikainen, Sini
  • Pauliuk, Stefan
  • Pirlot, Alice
  • Quirion, Philippe
  • Rosendahl, Knut Einar
  • Sniegocki, Aleksander
  • van Asselt, Harro
  • Zetterberg, Lars

Abstract

This report argues that Europe’s climate policymakers must prepare options to ensure the resilience of its industrial strategy in a global context of increasing fragmentation, and proposes a ‘climate contribution’ approach. In particular, the EU’s Carbon Border Adjustment Mechanism (CBAM) may not be sufficient to provide a level playing field if other countries do not pursue comparable carbon pricing strategies. The report is authored by a group of academics from institutions across Europe,[i] led by Karsten Neuhoff and Misato Sato, and published by the Grantham Research Institute with DIW Berlin and the Centre for Economic Transition Expertise (CETEx).

Suggested Citation

  • Neuhoff, Karsten & Sato, Misato & Ballesteros, Fernanda & Böhringer, Christoph & Borghesi, Simone & Cosbey, Aaron & Das, Katsuri & Ismer, Roland & Johnston, Angus & Linares, Pedro & Matikainen, Sini &, 2025. "Industrial decarbonisation in a fragmented world: an effective carbon price with a ‘climate contribution’," LSE Research Online Documents on Economics 129054, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:129054
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    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General

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