Munich Personal RePEc Archive

Fridays for Future meets the Hotelling rule: some thoughts on decarbonization policies

Pasche, Markus (2019): Fridays for Future meets the Hotelling rule: some thoughts on decarbonization policies.

[img] PDF
MPRA_paper_94803.pdf

Download (207kB)

Abstract

The Hotelling rule is applied to the case of a fixed CO2 budget restriction which has to be met in order to reach the global warming goal according to the Paris Agreement. While the theoretical result is well-known and simple, the practical implementation under technological uncertainty suggests that tradable emission certificates are superior to CO2 taxes. The practical implementaion has also to consider that production chains are globalized, and that decarbonization strategies will be pointless if the Global South is not part of it.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.