The Power of Carbon Pricing: A Comment on Döbbeling-Hildebrandt et al. (2024) and Its Press Release

Elisa Piseddu, Abel Brodeur (), Julian Rose, Maximiliane Sievert and Ankel-Peters, Jörg
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Elisa Piseddu: RWI – Leibniz Institute for Economic Research and Bernhardt Nocht Institute for Tropical Medicine
Abel Brodeur: University of Ottawa
Julian Rose: RWI – Leibniz Institute for Economic Research and Ludwig Maximilian University Munich, Department of Sociology
Maximiliane Sievert: RWI – Leibniz Institute for Economic Research
Ankel-Peters, Jörg: RWI – Leibniz Institute for Economic Research and University of Passau

No 18579, IZA Discussion Papers from IZA Network @ LISER

Abstract: Döbbeling-Hildebrandt et al. (2024, DH2024) conduct a meta-analysis of the effectiveness of carbon pricing. DH2024’s abstract concludes that 17 of 21 schemes evaluated in the literature produced substantial emissions reductions. A subsequent press release was headed: “Carbon pricing works†. This comment revisits the meta-analysis and examines whether its empirical evidence supports the claims made in DH2024’s abstract and, notably, the press release. We use DH2024’s own approach of accounting for statistical power and potentially biased causal inference in the underlying studies. We show that when these criteria are applied simultaneously and conservatively – which we argue they should be – only nine effective schemes remain, eight in China and one regional US scheme. We emphasize that statistical power is a major issue in most carbon pricing evaluations, because most carbon prices are very low, leading to weak signal-to-noise ratios. We conclude that DH2024’s policy implications and its press release therefore cannot be squared with its evidence base.

Keywords: carbon pricing; meta-analysis; statistical power (search for similar items in EconPapers)
JEL-codes: Q35 Q51 Q54 (search for similar items in EconPapers)
Date: 2026-04
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