2025

PP 2025.01 Supporting carbon pricing when interest rates are higher

Franziska Funke – Linus Mattauch – Thomas Douenne – Adrien Fabre – Joseph Stiglitz

Abstract

To accept carbon pricing, citizens desire viable alternatives to fossil-fuel based options. As inflation and higher interest rates have exacerbated access barriers for capital-intensive green substitutes, the political success of carbon pricing will be measured by how well policy design enables consumers to switch.
Policy Papers

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