Industrial decarbonisation in a fragmented world: an effective carbon price with a ‘climate contribution’

Karsten Neuhoff, Misato Sato, Fernanda Ballesteros, Christoph Böhringer, Simone Borghesi, Aaron Cosbey, Katsuri Das, Roland Ismer, Angus Johnston, Pedro Linares, Sini Matikainen, Stefan Pauliuk, Alice Pirlot, Philippe Quirion, Knut Einar Rosendahl, Aleksander Sniegocki, Harro van Asselt and Lars Zetterberg

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This report argues that Europe’s climate policymakers must prepare options to ensure the resilience of its industrial strategy in a global context of increasing fragmentation, and proposes a ‘climate contribution’ approach. In particular, the EU’s Carbon Border Adjustment Mechanism (CBAM) may not be sufficient to provide a level playing field if other countries do not pursue comparable carbon pricing strategies. The report is authored by a group of academics from institutions across Europe,[i] led by Karsten Neuhoff and Misato Sato, and published by the Grantham Research Institute with DIW Berlin and the Centre for Economic Transition Expertise (CETEx).

JEL-codes: J01 R14 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2025-01-22
New Economics Papers: this item is included in nep-ene and nep-env
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http://eprints.lse.ac.uk/129054/ Open access version. (application/pdf)

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Working Paper: Industrial decarbonisation in a fragmented world: an effective carbon price with a "climate contribution" (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:129054

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