Publications

Municipal building codes and the adoption of solar photovoltaics

Working paper by Stefano Carattini, Alexander Gordan, Andreas Löschel on 10 Oct 2022

A significant share of German municipalities have amended their building codes to restrict solar installations, often to preserve the historical nature of towns. These restrictions have an economically important impact on solar adoption. These restrictions should be reviewed to see whether they are still warranted today and in the future, as technology evolves.

Was the trade war justified? Solar PV innovation in Europe and the impact of the ‘China shock’

Working paper by Pia Andres on 6 Oct 2022

This paper examines the effects of Chinese import competition on European company’s solar photovoltaic (PV) technology innovation. it finds that competition from China encouraged European innovation, calling into question the rationale behind the trade war.

Carbon Leakage, Consumption, and Trade

Research article by Misato Sato on 19 Sep 2022

The authors of this paper review the state of knowledge concerning international CO2 emission transfers associated particularly with trade in energy-intensive goods and concerns about carbon leakage arising from climate policies.

Directed technological change and general purpose technologies: can AI accelerate clean energy innovation?

Working paper by Pia Andres, Eugenie Dugoua, Marion Dumas on 14 Sep 2022

This working paper shows that ICT and AI have the potential to accelerate clean energy innovation, which is critical for reducing carbon emissions.

Challenging government responses to climate change through framework litigation

Policy publication by Joana Setzer, Catherine Higham on 7 Sep 2022

Government framework litigation cases are becoming increasingly common, with litigants challenging governments’ policy responses to climate change. This report explores the significant impacts this has had, and will continue to have, on national policymaking and climate action.

Submission to the UK ETS Authority consultation, ‘Developing the UK Emissions Trading Scheme (UK ETS)’

Policy publication by Misato Sato, Luca Taschini, Josh Burke on 6 Sep 2022

This submission to the UK ETS Authority consultation on ‘Developing the UK Emissions Trading Scheme (ETS)’ provides evidence on implementing a net zero consistent ETS cap, Free Allocation policy, the expansion of the UK ETS to additional sectors, and incorporating greenhouse gas removal into the scheme.

Just Nature: How finance can support a just transition at the interface of action on climate and biodiversity

Policy publication by Sabrina Muller, Nick Robins on 23 Aug 2022

This report explores how financial institutions can support the ‘just nature transition’: a shift to a net zero economy that delivers decent work, social inclusion and the eradication of poverty while delivering biodiversity goals.

Who pays for greenhouse gas removal in the UK? Designing equitable policy to fund BECCS and DACCS

Policy publication by Josh Burke, Esin Serin on 16 Aug 2022

Greenhouse gas removal technologies will play an important role in the UK’s net zero pathway, but it is unclear how they can be funded fairly. We assess four policy options and compare how the costs will fall to UK households.

Allocation, allocation, allocation! The political economy of the development of the European Union Emissions Trading System

Research article by Misato Sato, Raphael Calel on 1 Aug 2022

This paper analyses the evolution of the EU ETS from a political economy perspective, emphasizing the interaction of economic principles and political interests at pivotal moments, and showing how each compromise changed the scope for future design choices.

The European Central Bank’s strategy, environmental policy and the new inflation: a case for interest rate differentiation

Policy publication by Jens Van ‘T Klooster on 18 Jul 2022

This report draws attention to some of the important lessons learned from the past few decades regarding the economic pre-conditions for price stability, as contained in the ECB’s 2021 strategy.