CO2 Pricing
A month before the crucial meeting of the German federal government's climate cabinet, German, Austrian and Swiss scientists from "Scientists for Future" published answers in mid-August 2019 to the ten questions they'd encountered most frequently in conversations and discussions about CO2 pricing over the preceding weeks and months. Covering everything from the question of effectiveness to the question of the appropriate price level, the text provides short answers alongside detailed explanations. Further questions address steering effects, possible consequences for the economy and for distributive justice, as well as the embedding within a broader mix of instruments.
Within economics, there has been broad consensus for decades that a price on greenhouse gases is a sensible means of reducing these climate-relevant emissions quickly and cost-effectively. In the wake of the "Fridays for Future" protests, amplified by the European elections and corresponding announcements by the federal government, the topic has now also attracted widespread attention in politics, the media and among the general public.
In the meantime, numerous new studies and recommendations have been put forward. Different concepts and instruments are competing for attention, their proponents and opponents arguing passionately — and many people in politics, business and society are struggling to keep track of it all.
"As Scientists for Future, we want to answer the current questions about CO2 pricing in a clear and scientifically sound way for policymakers and the interested public. This is an important task for science," says Dr Linus Mattauch, one of the two lead authors. His colleague Prof Dr Felix Creutzig adds: "The entire author team supports the swift introduction of a price on all relevant greenhouse gas emissions as an efficient, necessary and socially just means of climate protection. However, we're not making a recommendation as to whether the price should be implemented through a tax or an emissions trading scheme. We present the facts and explain the respective advantages and disadvantages."
"Scientists for Future" (S4F) aim to contribute to objectivity and factual rigour in the debate around climate and sustainability. The document sets out what lies behind the idea of a CO2 price.