Climate Policy and the Economy: Evidence from Europe’s Carbon Pricing Initiatives
本摘要源自该文的 NBER 工作论文版（2023），正式发表版可能有调整。
This paper investigates the impact of carbon pricing on the economy, with a focus on European carbon taxes and the carbon market.Our analysis reveals three key findings.First, while both policies have successfully reduced emissions, the economic costs of the European carbon market are larger than for national carbon taxes.Second, we explore four factors that explain this difference: fiscal policy and revenue recycling, pass-through and sectoral coverage, spillovers and leakage, and monetary policy.Our findings suggest that all four factors play a significant role.Third, we document substantial regional heterogeneity in the impacts of the carbon market, which crucially depend on the share of freely allocated emission permits and the degree of market concentration in the power sector.