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Supporting carbon pricing when interest rates are higher

Author

Listed:
  • Franziska Funke

    (TU Berlin)

  • Linus Mattauch

    (TU Berlin)

  • Thomas Douenne

    (University of Amsterdam)

  • Adrien Fabre

    (CIRED)

  • Joseph Stiglitz

    (Columbia University)

Abstract

To accept carbon pricing, citizens desire viable alternatives to fossil-fuel based options. As inflation and higher interest rates have exacerbated access barriers for capital-intensive green substitutes, the political success of carbon pricing will be measured by how well policy design enables consumers to switch.

Suggested Citation

  • Franziska Funke & Linus Mattauch & Thomas Douenne & Adrien Fabre & Joseph Stiglitz, 2025. "Supporting carbon pricing when interest rates are higher," Working Papers 2025.01, FAERE - French Association of Environmental and Resource Economists.
    • Handle: RePEc:fae:wpaper:2025.01
    as

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    File URL: http://faere.fr/pub/PolicyPapers/Funke_Mattauch_Douenne_Fabre_Stiglitz_FAERE_PP2025.01.pdf
    File Function: First version, 2025
    Download Restriction: no
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    Keywords

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    JEL classification:

    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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