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Drained peatland currently contributes 7.5% of Germany's total national greenhouse gas emissions. The National Peatland Protection Strategy adopted by the German government in 2022 recognizes that these emissions need to be reduced significantly to meet the country's climate change mitigation commitments. The present study employs a global dynamic computable general equilibrium model to assess the economic and greenhouse gas emission impacts of alternative agriculture-focused peatland rewetting scenarios for Germany up to 2030. In contrast to partial-analytic approaches, the global general equilibrium approach allows to take consistent account of economic ripple-on effects and carbon leakage effects triggered by peatland rewetting. The results suggest that in the medium term towards 2030 a reduction in annual emissions from agricultural peatland use by up to 45% are attainable at marginal private abatement costs between 27 and 61 Euro/tCO 2 e. Carbon leakage effects due to induced indirect land use change in Germany and the rest of the European Union reduce the global net emission reduction impact by 0.7 to 1.0% of the direct emission reduction. The effects on food prices remain small in all scenarios. In conclusion, a sizable reduction of Germany's land-use-related emissions is achievable at a low macroeconomic cost by moving beyond the moderate ambitions of the National Peatland Restoration Strategy. [ABSTRACT FROM AUTHOR]

The IPCC's 6th assessment report (AR6) has provided a wide range of variables and scenarios that meet climate targets of varying ambition. Many variables reported in the AR6 affect human welfare through climate change and mitigation, including but not limited to economic output, the natural environment, human health, and food and energy supply. In some of these dimensions, trade-offs exist between better performance in welfare-relevant dimensions and reaching more ambitious climate targets. Here, we apply recent advances in the theoretical multidimensional measurement of welfare, like the Human Development Index, to the AR6 database. The welfare metric is based on a welfare function approach, simple to apply, and intuitive. We apply a range of specifications of the welfare metric, aiming to derive robust rankings of climate policy targets that perform best in terms of the multidimensional welfare index. Across a large range of weights on welfare-relevant variables, we find that lower temperature is associated with higher welfare in 2100 unless there is a high weight on food supply. [ABSTRACT FROM AUTHOR]

The Andalusian olive grove in South Spain is employed as a case study to assess the environmental and economic effects of the green architecture (eco-schemes) of the Common Agricultural Policy in relation to low carbon agriculture under different soil management policy scenarios to support more efficient agri-environmental policy making. To do so, we adopted a multidisciplinary approach in which we used: (i) an integrated modelling framework comprising geographic information systems (GIS); (ii) the RothC model; and (iii) a cost-benefit analysis. Results show that eco-schemes provide a significant increase of soil organic carbon (SOC) relative to cross-compliance. Practices involving vegetation covers are more efficient than using pruning residues as mulching. SOC accumulation increases rapidly in the first five-ten years to slow down afterwards. The cost-benefit ratios of eco-schemes policy implementation are higher than one when only SOC is considered. Nonetheless, the inclusion of additional co-benefits has the potential to invert this scenario and enhance policy efficacy. Various insights on optimizing the design and application of eco-scheme efficiency are provided. • The new eco-schemes CAP instrument proposed for woody crops contribute to increase SOC • Mowing cover crops leads to the highest SOC stocks, whereas pruning debris maintains SOC stocks. • Tillage and no-tillage with bare soil systems lead to a significant depletion of SOC stocks. • The economic benefits of eco-schemes would not off-set the costs borne by public authority • Environmental externalities are key to reach the profitability of the policy instruments. [ABSTRACT FROM AUTHOR]

This study explores how rising economic costs of climate mitigation policies differentially shape climate policy support among the political left and right. To this end, we randomly manipulate how much consumption costs increase as a result of four different climate mitigation policies and study how different cost scenarios influence policy support among a sample of 1,597 Swedish adults. We find that more costly climate policies induce greater climate policy polarization, since right-leaning participants display both lower baseline and more cost-sensitive climate policy support. In addition, we investigate how policy costs affect participants' concerns about the climatic consequences of consumption. While inconclusive, the results indicate that right-leaning participants, in some instances, display less concern about the climatic consequences of consumption when policy costs rise. This pattern can be understood through the lens of motivated disbelief, which holds that people adjust their beliefs in order to support their preferred actions. The present study provides novel insights as to how and when material conditions influence climate policy preferences. [ABSTRACT FROM AUTHOR]

In 2018, Costa Rica demonstrated its commitment to the Paris Agreement and published its Decarbonization Plan for achieving zero net emissions by the year 2050. We evaluate the impacts of the country's strategy for decarbonizing its Agriculture, Forestry and Other Land Uses (AFOLU) sectors by coupling the Integrated Economic-Environmental Modeling framework with high-resolution spatial land use-land cover change and ecosystem services modeling (IEEM+ESM). Our results show that decarbonization of AFOLU would simultaneously enhance carbon storage, water purification, water regulation and erosion mitigation ecosystem services. Moreover, the positive cumulative wealth impact of decarbonization would be approximately US$7.27 billion by 2050 while lifting an additional 3810 individuals out of poverty. From a public investment perspective, decarbonization would have a fiscally neutral impact with the economic benefits sufficient in magnitude to off-set policy implementation costs and generate economic returns of over US$852 million when changes in natural capital stocks and environmental quality are considered. This application to Costa Rica is the first integrated economy-wide analysis of a growing number of decarbonization plans globally. The IEEM+ESM approach provides an integrated framework for analyzing decarbonization plans and can be used to refine AFOLU mitigation strategies to capitalize on synergies and minimize negative trade-offs across the three dimensions of wealth and sustainable economic development, namely economy, society and the environment. • Decarbonization of Costa Rica's AFOLU will generate US$7.3 billion in wealth. • AFOLU decarbonization will be fiscally neutral and generate returns of US$852 million. • The methods can be applied to integrated analysis of decarbonization globally. [ABSTRACT FROM AUTHOR]

We argue in this study that higher electricity expenditures increase voter support for the radical right because these parties oppose costly climate mitigation policies. We use data from Sweden, which experiences extremely high demand for heating energy during winter months. The demand for electricity differs greatly between geographical regions due to large temperature differences, from 0 in the southern regions to −50 Celsius in the north. We create our independent variable of electric grievances based on this variation, which increases faster with the spot price of electricity in neighborhoods with a low disposable income relative to the average electricity bill in that area. Using this setup, we find that electric grievances are associated with increased support for the radical right. We argue that soaring electricity prices tend to hurt parties with a mainstream profile since voters associate them them with more ambitious decarbonization policies, while the radical right gain support, since they tend to oppose costly solutions. Our results suggests that the transition to renewable energy can grind to a halt when electricity prices rise higher because voters may abandon the parties who push for the green transition. [ABSTRACT FROM AUTHOR]

Economists agree that carbon taxes are the most effective solution for climate change mitigation. But where do fossil fuel companies stand on carbon taxes? I analyse how the 100 largest oil and gas companies communicate on carbon taxes. Surprisingly, I find that 54% of companies that have a policy on carbon taxes support them (78% for the 50 largest). This is puzzling as an effective carbon tax should reduce the revenues and reserve value of fossil fuel companies. To understand this paradox, I offer non-mutually exclusive reasons why fossil fuel companies might support carbon taxes. Oil and gas companies could use a carbon tax to get rid of the competition from coal, create a level playing field and remove regulatory uncertainty. Or they think that these taxes will not affect them because demand for oil and gas is inelastic or that international coordination will fail and lead to leakages. Finally, it could be that this is simply a communication exercise. A carbon tax helps them shift the responsibility from fossil fuel companies to customers, voters and elected officials. [ABSTRACT FROM AUTHOR]

Energy efficiency measures are a key element in the fight against climate change. However, their effectiveness is threatened by so-called rebound effects—behavioral changes that lead to increased use and thus to lower-than-expected absolute savings. The moral licensing bias might cause rebound effects on the individual level: When people implement energy efficiency measures, they may feel that they have done something good for the climate and thus license themselves to less climate-friendly behavior later on. We test this prediction with three pre-registered experiments (total n = 2315). While our manipulated efficiency does increase the feeling of having done something good for the climate, no negative effects emerge on subsequent climate-friendly behavior—contrary to the predictions derived from the moral licensing literature. Climate-friendly behavior is thus not hampered by prior energy efficiency behavior; rather, demographics (women and older people act in a more climate-friendly manner) and environmental attitude determine it. Our results imply that the literature suggesting moral licensing is probably not transferable to the field of energy efficiency, and thus moral licensing may not lead to rebound effects in this context. We discuss possible explanations, implications for climate policy making, and needs for future research. [ABSTRACT FROM AUTHOR]

It is argued that the political feasibility of climate mitigation policies depends heavily on their distributional effects. This paper therefore studies the distributional effects of the European Commission's Fit-for-55 package at the household level in seven EU countries, analyzing a carbon tax on transport and heating fuels as well as variations of a lump-sum refund. Based on the resulting income distributions, different inequality measures are computed. The paper aims to extend previous methodological approaches by including inequality measures such as the Theil index and Atkinson index and comparing the results of carbon taxes on transport and heating fuels for seven EU countries in a consistent manner. I find that a household-size specific lump-sum refund not only mitigates the negative distributional effects of a carbon tax but also reduces overall inequality compared to the baseline scenario without a tax. [ABSTRACT FROM AUTHOR]