News Digest Item
06 Feb 2018

CO2 price reduces emissions and supports growth – study

Mercator Research Institute on Global Commons and Climate Change

Introducing a CO2 price would not only reduce greenhouse gas emissions but also the returns on investments into fossil fuel energy sources, leading to increased investment in technology, research and development in other sectors, the Mercator Research Institute on Global Commons and Climate Change (MCC) says in a new study. Economists Jan Siegmeier, Linus Mattauch and Ottmar Edenhofer run a mathematical proof in their paper “Capital beats coal: how collecting the climate rent increases aggregate investment”, refuting the common idea that a determined environmental policy would cause de-industrialisation.

Read the paper in English here (behind paywall).

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