Modeling GHG Mitigation Policies- Carbon Pricing vs. Standards

TL;DRAbstract

current IPCC report and the Stern Report have drawn public attention to climate change and its ecological as well as its economic consequences. Transportation has a significant and still rising share of aggregate GHG emissions. Thus, the European Union and its member states are under increasing political pressure to integrate the transport sector into its future climate policy, in particular its future CO2-regime. This paper aims at providing an analysis of the options currently discussed, assessing potential climate change policies for the transport sector, and identifying the most promising instruments. The paper’s intention is to derive recommendations for actual transport and climate change policy at the European and at the national level. Our analysis will be based on a bottom-up model and will focus particularly on carbon pricing and technological and emission standards. Schäfer / Jacoby (2003) have already analyzed by means of a CGE-model the technological development in the tra

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