OECD Economics Department Working Papers

ISSN :
1815-1973 (online)
DOI :
10.1787/18151973
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Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

 

Climate Change Policies in Germany

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Author(s):
Caroline Klein1
Author Affiliations
  • 1: OECD, France

Publication Date
12 Sep 2012
Bibliographic information
No.:
982
Pages
42
DOI
10.1787/5k92sn0f8dbt-en

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Germany reduced greenhouse gas emissions substantially but remains an important emitter. Ambitious targets for climate change mitigation have been fixed and a broad range of environmental measures are being implemented. The efficiency of these measures, as well as their coordination, should be improved though, as reaching the targets risks being costly. In particular, the early phase-out of nuclear power and the development of renewable energy sources will require high levels of investment and public financial support. Establishing a clear carbon price in all sectors of the economy and phasing out environmentally harmful subsidies would contribute to reducing the CO2 abatement cost. The generosity of feed-in tariffs also needs to be carefully monitored and adjusted tightly in line with market developments to avoid deadweight losses and excessive increases in electricity prices. In addition, in order to maintain the German leadership in green sectors and preserve future sources of growth, competition in the energy sectors should be increased and eco-innovation further developed. This Working Paper relates to the 2012 Economic Survey of Germany, www.oecd.org/eco/surveys/germany.
Keywords:
Germany, climate change, green growth, innovation
JEL Classification:
  • H23: Public Economics / Taxation, Subsidies, and Revenue / Externalities; Redistributive Effects; Environmental Taxes and Subsidies
  • O44: Economic Development, Technological Change, and Growth / Economic Growth and Aggregate Productivity / Environment and Growth
  • Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Government Policy