Thank you very much for this insight! I have a few questions:
1) Isn’t a carbon pricing system an indirect subvention towards clean energy etc.? When there is a carbon tax, private investments into better renewables are enforced, so both effects are combined—is this regarded in the studies?
2) Does the suggested approach require a new international agreement? In my opinion, the most efficient way for more climate change is that every state in the world has to reduce its emissions. But as there is the free rider problem, it is necessary to have international agreements. The current agreement was made in Paris—and states that every country has to reduce its emissions. Even if this agreement fails, it is the only “official” method. For investments into cleaner energy technology, the free rider problem might still occur. For instance is Germany’s investments in solar energy in the beginning of this century regarded as “a present to the world” regarding net zero transmission. So when I think about it, I come to the conclusion that there must be a new international agreement towards both a worldwide carbon pricing system and fair shared investments into cleaner technology research. How could this be enforced?
Is ITIF working more on national or international level?
Thank you very much for this insight!
I have a few questions:
1) Isn’t a carbon pricing system an indirect subvention towards clean energy etc.?
When there is a carbon tax, private investments into better renewables are enforced, so both effects are combined—is this regarded in the studies?
2) Does the suggested approach require a new international agreement?
In my opinion, the most efficient way for more climate change is that every state in the world has to reduce its emissions. But as there is the free rider problem, it is necessary to have international agreements. The current agreement was made in Paris—and states that every country has to reduce its emissions. Even if this agreement fails, it is the only “official” method. For investments into cleaner energy technology, the free rider problem might still occur. For instance is Germany’s investments in solar energy in the beginning of this century regarded as “a present to the world” regarding net zero transmission.
So when I think about it, I come to the conclusion that there must be a new international agreement towards both a worldwide carbon pricing system and fair shared investments into cleaner technology research. How could this be enforced?
Is ITIF working more on national or international level?
Thank you for your thoughts and contributions!