Bertelsmann Stiftung (ed.)

Dr. Thieß Petersen, Thomas Rausch

Policy Brief #2021/02: Carbon needs a price – and proactive economic policy measures

Policy Brief Series Future Social Market Economy

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Date of publication
1. edition
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Greenhouse gas emissions must be reduced if climate change is to be slowed. Charging a higher price for emissions is an effective way to achieve that goal. Making emissions more expensive reduces emissions-generating activities and increases incentives to develop and use low-emission technologies. To avoid social hardship, however, proactive economic policy measures are also required, especially in the areas of social welfare, industrial production and innovation, and foreign trade.

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