This Wuppertal Paper serves to a) analyse the possible climate change mitigation effect of a CO2 price, as a stand-alone instrument and in the overall package of instruments for climate mitigation , b) to analyse and evaluate the possibilities of using the funds created, c) thereby to understand the arguments and motivations in the existing proposals, and d) to outline a model from the analysis, which best meets the requirements of climate change mitigationand social justice as well as maintaining competitiveness, so that it can serve as a stimulus for the Federal Government in its decision on the introduction and design of a CO2 price.
In the paper, these questions will be explored on the basis of nine theses with a concluding conclusion. They back the conclusion:
A CO2 price will not be able to replace sectoral climate policy targets and instruments. Only if introduced in conjunction with sector-specific climate policy instruments, it will achieve its full impact. And only if such instruments are funded from a good part of the revenues of a CO2 tax, climate policy targets will be achievable. These targets will then also be achievable with a much lower CO2 price level and at higher net cost savings for consumers, businesses, and even the government's budget, than if politics bet on a CO2 price alone.
Stefan Thomas, Manfred Fischedick, Lukas Hermwille, Felix Suerkemper, Johannes Thema, Maike Venjakob:
Ein CO2-Preis als Instrument der Klimapolitik: notwendig, aber nur im Gesamtpaket wirkungsvoll und sozial gerecht
(Wuppertal Paper no. 195)