The Pricing of Greenhouse Gas Emissions

The paper places CO₂ pricing in a broader context and outlines how a CO₂ pricing package could be designed. Such a reform programme should pursue several objectives. One would be to reduce greenhouse gas emissions, especially CO₂. At the same time, a more productive use of other raw materials and a transition to a circular economy should also be encouraged. In addition, there is a need to create incentives for innovation. A policy package on CO₂ pricing should include compensatory measures that on the one hand mitigate undesirable distribution effects and on the other hand provide incentives for structural changes.