Leaving Coal Unburned: Options for Demand-Side and Supply-Side Policies
Kim Collins and
Roman Mendelevitch ()
No 87, DIW Roundup: Politik im Fokus from DIW Berlin, German Institute for Economic Research
Climate policy consistent with the 2°C target needs to install mechanisms that leave most current coal reserves unburned. Demand-side policies have been argued to be prone to adverse carbon leakage and “green paradox” effects. A growing strain of literature argues in favor of supply-side policies in order to curb future coal consumption. Various concepts with analogies in other sectors are currently discussed. Future empirical research on both demand- and supply-side policy is vital to be able to design efficient and effective policy instruments for climate change mitigation.
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