Climate Mitigation Policy in Denmark: A Prototype for Other Countries

Nicoletta Batini, Ian Parry and Philippe Wingender

No 8895, CESifo Working Paper Series from CESifo

Abstract: Denmark has a highly ambitious goal of reducing greenhouse gas emissions 70 percent below 1990 levels by 2030. While there is general agreement that carbon pricing should be the centerpiece of Denmark’s mitigation strategy, pricing needs to be effective, address equity and leakage concerns, and be reinforced by additional measures at the sectoral level. The strategy Denmark develops can be a good prototype for others to follow. This paper discusses mechanisms to scale up domestic carbon pricing, compensate households, and possibly combine pricing with a border carbon adjustment. It also recommends the use of revenue-neutral feebate schemes to strengthen mitigation incentives, particularly for transportation and agriculture, fisheries and forestry, though these schemes could also be applied more widely.

Keywords: climate change; Denmark climate mitigation; carbon pricing; feebate; revenue recycling; border carbon adjustment; transportation; agriculture (search for similar items in EconPapers)
JEL-codes: H23 Q48 Q54 Q58 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-ene, nep-env and nep-reg
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Working Paper: Climate Mitigation Policy in Denmark: A Prototype for Other Countries (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_8895

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