More Effective Climate Policy Through Smart Adjustments
To make the economy more sustainable, thoughtful policy choices are essential. Antonia Kurz studied how climate measures can sometimes have unintended effects in practice, and how they can be improved.
Kurz demonstrates that exemptions for small polluters within CO₂ pricing systems often have the opposite of the intended effect: these companies end up emitting more, thereby undermining some of the climate benefits. She also shows that CO₂ taxes and fossil fuel subsidies affect the international competitiveness of companies, especially in carbon-intensive sectors. This highlights the importance of international coordination to maintain a level playing field.
Kurz also points to the risks of market dominance in the supply of critical raw materials such as lithium. This concentration drives up the cost of green technologies and slows down the energy transition. Policy solutions like recycling subsidies can help alleviate these bottlenecks.
Kurz's research offers practical tools for policymakers and businesses to make climate policy fairer, more effective, and more future-proof—with the goal of enabling a faster and more affordable transition to a green economy.
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