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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]

To motivate public participation in climate change mitigation, both "carrot" policies that create positive incentives for mitigated carbon and "stick" policies that create negative incentives for emitted carbon have been widely applied. Given the joint deployment of these measures, a key question is whether they are compatible with each other. Focusing on the Low-Carbon Reward Scheme (LCRS) and carbon taxes, two prominent proposals on China's climate policy agenda, this study evaluates how one incentive policy affects public support for the other. The results of a large survey experiment with Hangzhou residents indicate a two-way crowding-out effect, wherein introducing the LCRS diminished support for the tax, albeit primarily among LCRS proponents, and introducing the tax reduced support for the LCRS. Aligning with the proposed account, crowding out was driven by a decrease in policy effectiveness and fairness perceptions. These findings reveal a contradictory relationship between carrot and stick policies at the citizen level and illuminate the underlying mechanism. • Both carrot and stick policies are applied to motivate climate mitigation behaviors. • We identify a two-way crowding-out effect between these policies in public opinion. • Introducing a stick (carbon tax) reduces support for a carrot (low-carbon reward). • Introducing a carrot reduces support for a stick among people favoring the carrot. • Crowding out is driven by weakened policy effectiveness and fairness perceptions. [ABSTRACT FROM AUTHOR]

Methane seeps are highly productive ecosystems that provide carbon sequestration services, host diverse communities including endemic species, and serve as habitats for commercial fisheries. Little is known about the economic value the public places on them. Discrete Choice Experiments (DCEs) are administered to a sample of Costa Rican taxpayers to evaluate their willingness to pay (WTP) in monetary terms using tradeoffs made in a survey context involving three of the main attributes of methane seep ecosystems to provide insights for future conservation and management efforts. Extensive effort is devoted to understanding how Costa Ricans view different aspects of the deep sea. We find that they associate it with strange animals, natural resources, the unknown, and being far from reach. Perhaps surprisingly, they underestimate how much they know about the deep sea. We find that WTP for methane seep protection is the highest for programs that protect seeps with endemic species, followed by seeps with high climate change mitigation potential and commercial fishing habitat. Higher-income groups and women are more likely to prefer options that increase the current level of protection. We discuss how science communication and community engagement contribute to care expressed toward the deep sea. • Methane seeps provide important ecosystem services and economic values. • Costa Ricans are willing to pay for methane seep conservation. • Human connection and highest WTP were associated with existence values. • WTP increased with knowledge, suggesting a key role for science communication. • Management efforts should consider deep-sea literacy and non-use values. [ABSTRACT FROM AUTHOR]

Energy transitions in Indigenous, Northern and remote communities in Canada promise benefits that go beyond reliable, clean and affordable energy services. The Federal and Provincial governments have committed funding to get remote communities off diesel, acknowledging energy transitions' global and local benefits. Besides climate change mitigation, other benefits, including job creation, income generation, community ownership and local economic growth, are fundamental components of the value proposition of renewable energy projects. However, despite the promises, little evidence of the impacts of renewable energy on communities' local conditions exists. This article looks at the relationship between renewable energy projects and community well-being in Canada. We construct a panel of Indigenous communities and well-being levels using Census data and information about renewable energy projects for the period 1981–2016. The findings suggest that renewable energy is associated with higher levels of well-being. Concretely, having access to renewable energy increases overall well-being by 1 to 5 points on the 0–100 well-being scale, depending on the component of the well-being index considered in the analysis. • Renewable energy and community wellbeing is an essential relationship for successful energy transitions. • The size of the renewable energy projects is strongly associated with higher community wellbeing. • Communities that hold majority ownership of renewable energy projects exhibit higher wellbeing levels. • Solar and wind energy projects are associated with higher wellbeing levels, whereas hydropower is associated with lower ones. [ABSTRACT FROM AUTHOR]

Virtual water trade (VWT) is the trade of water 'embodied' in a product. This paper explores the extent to which bilateral tariffs, World Trade Organization (WTO), and Regional Trade Agreements (RTA) reshape the trade of water across nations and alleviate water scarcity issues. To achieve this goal, we built a panel database on blue (irrigation water) and green (rainwater) VWT among paired trading countries from 1998 to 2002. Using a standard gravity model, we study how the bilateral tariff and WTO/ RTA affect the intensity of blue and green VWT. The results indicate that, on average, a 1% tariff reduction increases the green virtual water trade by 0.219%. In most waterstressed countries, a 1% reduction in tariffs increased blue VWT by 0.416% and green VWT by 0.424%. By crops, we find that tariffs had a negative effect on VWT for the less water-intensive crops, but a positive effect or no effect on the more water-intensive crops. We further find in the most water-stressed countries, RTA facilitated VWT. As a climate mitigation strategy, water-scarce countries can increase VWT, thus reducing the production of water-intensive crops, by lowering tariff rates independently or through trade agreements. [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]

Transitions to low-carbon energy technologies and other forms of climate mitigation tend to involve disempowerment and environmental injustices of various kinds. This paper argues that such tendencies are inherent in the social rationale of technological systems promoted by the logic of the world market. The production and operation of technological artifacts are imbued with economic rationality and must not be conceptualised as distinct from the organisation of society. This is illustrated by the energy transition that occurred during the Industrial Revolution, in which the underlying incentives of ecologically unequal exchange and environmental load displacements were transmuted into seemingly neutral concerns of economic rationality and technological progress. The distributive dimensions of markets and technologies become apparent as we now aspire to abandon the fossil energy regime, revealing how our concepts of 'energy' and 'technology' may obscure global processes of appropriation of human labour time and natural space. Such processes are as insidiously inscribed in low-carbon energy technologies as in the fossil-fueled technologies that they are intended to replace. To identify such pervasive injustices as inherent in technologies rather than contextual contingencies requires an acknowledgement of the social essence of technical artifacts. This in turn requires a deep transdisciplinarity that links physics, industrial ecology, the philosophy of technology, social theory, world trade, and the history of ideas. Current efforts to transcend the distinction between the social and the material pervasively fail to integrate social theory and physical resource theory. Rather than investigate the social and ecological repercussions of technological systems, the focus of energy justice research should be to discover the tacit, distributive functions that are inscribed in the technologies to begin with. • Technological artifacts are imbued with economic rationality. • Injustices are inherent in technological systems promoted by the world market. • Concepts of 'energy' and 'technology' obscure global appropriation of time and space. • Unequal exchange is transmuted into seemingly neutral concerns. • Global social theory must be integrated with physical resource theory. [ABSTRACT FROM AUTHOR]

Climate policy is often described by economists as an intertemporal consumption trade-off: consume all you want today and face climate damages in the future, or sacrifice consumption today to implement costly climate policies that will bring future benefits through avoided climate damages. If one assumes enduring technological progress, a society that is more averse to intertemporal inequalities should postpone climate policies and let future, richer generations pay more. Growing evidence however suggests that the trade-off is more complex: abrupt, extreme, irreversible changes to the climate may cause discontinuities to socio-economic systems, possibly leading to a sharp decline of human population and consumption per capita. In this paper, we show that, when accounting for a very small risk of catastrophic climate change, it is optimal to pursue stringent climate policies to postpone the catastrophe. Our results conform with the well-known conclusion that tight carbon budgets are preferred when aversion towards inequalities between generations is low. However, by contrast with previous studies, we show that stringent policies are also optimal when inequality aversion is high. The non-monotonicity of the influence of inequality aversion is due to the fact that, for a given investment in abatement, a higher inequality aversion gives a smaller weight to avoided future non-catastrophic damages, but a larger weight to the catastrophic outcome. We also explore the role of population ethics, and show that the size of the optimal carbon budget decreases with the social preference for large populations, although this parameter plays almost no role at extreme levels of inequality aversion. Our result demonstrates that views from opposite sides of the ethical spectrum in terms of inequality aversion converge in terms of climate policy recommendations, warranting immediate climate action. [ABSTRACT FROM AUTHOR]

This study adapts the Faustmann model (1849) to include the effects of carbon-based payments for environmental services on the optimal rotation length of forest plantations. We assume payments occur at the end of the harvesting cycle and are based on the additional average carbon stock over the rotation length relative to an optimal management scenario without carbon incentives. We present numerical applications of our model based on the four most planted tree species in the world: Eucalyptus sp., Acacia sp., Pinus sp. and Tectona sp. Simulations were performed to quantify the impact of different payment levels (USD Mg CO 2 −1) on optimal rotation lengths and carbon stocks. We find diminishing sequestration returns to increasing carbon payments. Overall, our results suggest that targeting plantations with longer rotations, associated with slow-growing species, is a more cost-effective strategy to retain additional forest carbon stored (USD Mg CO 2 −1). However, such a strategy results in lower proportional increases in carbon stocks (Mg CO 2 ha−1) compared to faster-growing species, which benefit the most from the carbon incentives. As a result, increasing payments for additional carbon stored could change the choice of which tree species to produce and ironically promote plantations with lower total carbon stocks. • PES are based on the additional average carbon stock over the rotation length. • We find diminishing sequestration returns to increasing carbon payments. • Carbon payments may change the choice of which tree species to produce. [ABSTRACT FROM AUTHOR]

The saltmarsh carbon storage potential is a key topic in blue carbon research and climate policy. Ecosystem service valuations provide valuable information to policymakers for habitat management and climate change mitigation policies. Yet, only few saltmarsh valuation studies have included the carbon storage service in the UK context. This paper investigates how the public values saltmarsh ecosystem services, focussing on the carbon storage service. We used a choice experiment to elicit the willingness to pay (WTP) of a representative sample of the Scottish public to support interventions that would maintain or improve the provision of these services. Furthermore, we tested the effect of information on individuals' preferences and WTP with a split sample approach where one group received a treatment in the form of additional information. We found that (i) all attributes had a significant influence on individuals' choices; (ii) both groups had, on average, a positive marginal WTP for all presented ecosystem services; (iii) the treated sample had, on average, no significantly different marginal WTP for carbon storage than the control group. This paper adds to the limited literature on the saltmarsh carbon storage ecosystem service and demonstrates a developed nation's public's openness to nature-based climate change mitigation solutions. [Display omitted] • The Scottish public on average prefers saltmarsh management over the status quo. • Providing additional information reduced heterogeneity in WTP for carbon storage. • Most respondents preferred an improvement of all saltmarsh ecosystem services. • Therefore management should focus on both climate change mitigation and adaptation. [ABSTRACT FROM AUTHOR]

Germany remains the only large country in the world without a general speed limit on highways. One of the main arguments for this policy is that lower speeds represent a travel time cost that is not outweighed by benefits, such as a reduction in greenhouse gas emissions. As transport decision making in the European Union is based on cost-benefit analysis (CBA), this paper compares the value of travel time, fuel consumption, infrastructure, crashes, carbon dioxide (CO 2), and air pollution. Results suggests that, at the low end of the estimate, a 130 kph speed limit will generate welfare gains in the order of 950 million Euro per year. The 'no speed limit' policy consequently represents a subsidy forwarded to fast drivers. The paper also discusses the views of the public vis-à-vis automobile lobbies, and the relevance of Germany's climate change mitigation law, mandating that transport systems be decarbonized. The CBA suggests that a 130 kph speed limit is a policy field where environmental concerns, positive economic effects, and public opinion can be aligned. [ABSTRACT FROM AUTHOR]

Abstract Reducing power sector emissions in China is a critical step toward mitigating climate change and lowering health damages from air pollution. We conduct a discrete choice survey (N = 1060) among urban residents from 10 Chinese cities, assessing how individuals compare electricity source, cost, and reduction of emissions related to climate change or air pollution. Using observed air quality data, we also evaluate how pollution levels affect respondents' support for different types of emissions reductions. We find that reductions targeting both climate change and human health benefits have stronger support than those which address only one of the two. Furthermore, respondents in cities with the highest annual concentrations of particulate matter are willing to pay 30% more to clean up the air when compared to individuals living in less polluted cities. The analysis suggests that the public values co-optimizing mitigation policy across climate and health objectives, and that making available information on long-term air quality may encourage sustained support for cleaner energy. [ABSTRACT FROM AUTHOR]

Indigenous communities (ICs) have emerged as important players in global efforts to reduce forest carbon emissions, in part because they are viewed as conscientious stewards of the forest lands to which they have legal title. Yet ICs tend to be located in remote areas where deforestation would be limited regardless of who manages them. Therefore, to determine whether IC management actually cuts forest carbon emissions, it is important to control for such confounding factors. To that end, we use propensity score matching and regression to analyze the effects on 2001–2013 deforestation and forest carbon emissions of IC management in the Amazon regions of Bolivia, Brazil, Ecuador and Colombia. We find that IC management reduces both deforestation and forest carbon emissions in Bolivia, Brazil and Colombia. We are not able to discern a statistically significant effect in Ecuador. These findings suggest that IC management can, in fact, help combat climate change. [ABSTRACT FROM AUTHOR]

We introduce a methodology to estimate the determinants of the formation of technology diffusion networks from the patterns of technology adoption. We apply this methodology to wind energy, which is one of the key technologies in climate change mitigation. Our results emphasize that, in particular, long-term relationships as measured by economic integration are key determinants of technological diffusion. Specific support measures are less relevant, at least to explain the extensive margin of diffusion. Our results also highlight that the scope of technological diffusion is much broader than what is suggested by the consideration of CDM projects alone, which are particularly focused on China and India. Finally, the network of technological diffusion inferred from our approach highlights the central role of European countries in the diffusion process and the absence of large hubs among developing countries. [ABSTRACT FROM AUTHOR]

This study combined the input-output clustering analysis and structural path betweenness analysis, and identified critical sectors belonging to important emission clusters in the global supply chain networks associated with final demand of transport equipment in five countries (United States, China, Germany, Japan, and France). Clustering analysis can divide the groups constructing the strong connecting supply chain with large emissions from the global supply chain network, and structural path betweenness represents how much CO 2 emissions from the supply chain paths a sector has in global supply chain network. I applied the combined method to the EORA database which covers 189 countries and focused on the whole global supply chain networks in detail. The results demonstrate that the global supply chain networks of transport equipment were well separated into emission clusters with higher emissions that consist of sectors with higher structural path betweenness. Chinese emission clusters were identified from the global supply chain networks for the five countries in question and the betweenness of Chinese sectors tend to be higher values in the supply chain networks. In this study, I suggested supply chain management of high priority sectors for a reduction in CO 2 emissions of transport equipment in the producing countries. [ABSTRACT FROM AUTHOR]

The prospects for long-term sustainability depend on whether, and how much, we can absolutely decouple economic output from total energy and material throughput. While relative decoupling has occurred – that is, resource use has grown less quickly than the economy – absolute decoupling has not, raising the question whether it is possible. This paper proposes a novel explanation for why decoupling has not happened historically, drawing on a recent theory of cost-share induced productivity change and an extension of post-Keynesian pricing theory to natural resources. Cost-share induced productivity change and pricing behavior set up two halves of a dynamic, which we explore from a post-Keynesian perspective. In this dynamic, resource costs as a share of GDP move toward a stable level, at which the growth rate of resource productivity is typically less than the growth rate of GDP. This provides a parsimonious explanation of the prevalence of relative over absolute decoupling. The paper then presents some illustrative applications of the theory. [ABSTRACT FROM AUTHOR]

Bioeconomy as a political-economic concept proposes the replacement of fossil resources by bio-based resources in order to address climate change mitigation and counteract resource depletion. The aim of this paper is to figure out how competitiveness across primary sectors, i.e. sector A, bio-based agriculture , forestry and fishing , and sector B, non-bio-based mining and quarrying , is distributed across geographical regions and how it changes over time. A constant market share analysis based upon sectoral output data (2000–2014) shows that competition for market share was significantly lower in sector A than in sector B across 43 countries and one rest of the world country group (ROW), consisting mainly of smaller non-European economies. As a long-term trend, ROW gained market share in both sectors but with a much higher magnitude in sector B, from Europe, the USA, China and other countries. At times when world growth was negative or near zero (2009 and around 2013), ROW substantially lost market share in sector B with respect to the other regions mentioned. [ABSTRACT FROM AUTHOR]

GDP scenarios are major drivers of climate change and climate change mitigation assessment studies. In this paper, a major update of the SSP GDP projections is presented. By using the most recent economic data and short-term projections by the World Bank and International Monetary Fund, the update captures changes in the system of national accounting and purchasing power parities, as well as the impact of the Covid 19 pandemic. Harmonization between the data and the original end-of-the century SSP projections was carried out in terms of GDP per capita in order to preserve the underlying narrative of income convergence. The result is a set of projections compatible with the most recent data and the SSP narratives. A comparison of DICE models calibrated to the original and updated SSP2 GDP per capita projections illustrates how significant the impact of an update of income data on integrated assessment results can be. The estimated global social costs of carbon in 2015 and 2030 rose by almost 30%. [ABSTRACT FROM AUTHOR]

In this study, the price of carbon is used to incentivize a reduction in the release of CO 2 emissions and an increase in sequestration of CO 2 through forestry activities. Forest managers essentially have two options for increasing carbon sequestration (i.e., creating carbon offset credits): (1) avoid or delay harvest of mature timber; or (2) harvest timber and allow natural or artificial regeneration (with ‘regular’ or ‘seed-selected’ growing stock). A forest management model representative of the southern interior of British Columbia is described and used to examine forest conservation that prevents emissions of CO 2 , and even-flow and commercial harvesting where timber is processed into long-lived wood products that store carbon and residuals for energy. The objective of the model is to maximize net discounted returns to commercial timber operations plus the benefits of managing carbon fluxes. The model tracks carbon in living trees, organic matter, and post-harvest carbon pools. It also includes various parameters related to the weighting of future carbon flows, anticipated price of carbon, whether and to what extent use of biomass reduces fossil fuel emissions from generating electricity or production of non-wood construction materials, et cetera. The results demonstrate that the decision about which forestry activities generate carbon offset credits and how many is essentially a political and not a scientific one. [ABSTRACT FROM AUTHOR]

The role of technology transfer in the mitigation of climate change has been strongly emphasized in the recent policy debate. This paper offers a network-based perspective on the issue. First, we propose a methodology to infer from technology adoption data the network of diffusion and apply it to a detailed dataset on wind energy technologies installed globally since the 1980s. We then perform a statistical analysis of the network. It highlights a relatively inefficient organization, characterized in particular by the weakness of South-South links, which leads to relatively long lags in the diffusion process. Against this background, we characterize optimal transfer/seeding strategies for an agent that aims to introduce a new technology in a developing country in view of further diffusion. Our results suggest in particular that CDM projects have been too concentrated in large emerging economies and that developed countries should put a stronger weight on the positive externalities in terms of technology transfer of cooperating with less prominent developing countries. [ABSTRACT FROM AUTHOR]

The ambitious goals to limit global warming can only be reached with a broad acceptance and participation of the general public. This paper relies on surveys among citizens in China, Germany and the U.S. and investigates the determinants of the acceptance of national and international adaptation and mitigation efforts. The empirical findings indicate that specific beliefs and environmental awareness are important drivers in all three countries, while political attitudes and socio-economic characteristics are the main sources of cross-country heterogeneity. The study thereby points at important starting points and target groups for raising the acceptance of national and international climate policy. [ABSTRACT FROM AUTHOR]

This paper empirically explores the linkage between the economic opportunities and climate adaptation and other antecedents in cities. Our dependent variable includes the economic opportunities identified by the cities; our independent variables are the adaptation plans, adaptation actions, climate change risks, incentive types, and incentivized stakeholders. To explore the effects of climate change risks, adaptation plans, adaptation actions, incentive types, and incentivized stakeholders, we used polychoric factor analysis and logistic regression analysis. The results show that a city's climate change adaptation plan and GDP have significant positive relationships with the economic opportunities present in the cities. Meanwhile, climate change risks also have a positive relationship with economic opportunities. Furthermore, economic opportunities present in cities have a negative relationship with three variables: one group of climate actions and two groups of stakeholders. This paper also further discusses the possible effects of incentives in the case of climate change in cities. [ABSTRACT FROM AUTHOR]

Will climate change be mitigated automatically by ongoing processes of urbanization as proposed by the “dense cities” hypothesis? Our answer is based on the German official income and expenditure survey (EVS) of 2013, which allow us to disaggregate total household expenditures into 44 consumer good categories (COICOP) and their respective GHG intensities. Results show that the density effect of cities saves some greenhouse gas (GHG) emissions in Germany, but singularisation of households, higher incomes and greater consumption opportunities in cities work in the opposite direction. Thus, smaller and larger municipalities are more or less on par with each other in terms of per capita emissions. Rural households are found to be more affected by environmental taxes which are imposed on direct rather than on indirect energy use in the course of German “Energiewende” policy reform. This is discussed in the article as a rural-urban social equity problem. [ABSTRACT FROM AUTHOR]

This paper explores the scope for simultaneously managing nutrient abatement and climate change mitigation in the Baltic Sea (BS) region through the implementation of a selection of measures. The analysis is undertaken using a cost-minimisation model for the entire BS region, the BALTCOST model. In the present research, the model has been extended to include greenhouse gas (GHG) emissions effects, enabling us to analyse the trade-offs between cost-effective GHG and nutrient load reductions. We run the model for four different scenarios in order to compare the environmental and economic consequences of contrasting strategies: single environmental objective management versus joint implementation strategy. The results show that implementing land-based measures with a sole focus on water quality (to meet the HELCOM's 2013 Baltic Sea Action Plan nutrient abatement targets) can produce climate change mitigation co-benefits equivalent to 2.3% of the 2005 emission level (from agriculture and waste water combined) for the entirety of the BS region. More interestingly, a joint implementation strategy can deliver further climate change mitigation benefit (i.e. up to 5.4%) at a marginal cost that is comparable to mitigation costs reported by other studies for efficient technologies. All in all the results demonstrate that a joint strategy to improve water quality and to reduce climate change is economically beneficial. Our findings show that the cost and the outcome of the implementation vary between countries. This illustrates the need to develop a joint regional policy for water and climate regulation that fully considers the asymmetry in both the expected effects and cost distribution across the countries in the region. [ABSTRACT FROM AUTHOR]

The European Union (EU) faces a double crisis: both economic and environmental, which has brought into stark relief the question of whether climate change mitigation and economic growth are mutually exclusive. Is saving the environment a ‘luxury’ reserved for wealthy countries, with less affluent countries being too poor to be green? We seek to address this important and timely question using fuzzy-set Qualitative Comparative Analysis (fsQCA) to analyse the causal relationship between economic growth and stability, and the expansion of renewable electricity shares among the European Union's (EU) 28 member states during the recent economic recession (2008–2013). Our paper, analyses the recent economic and financial crisis and its effects on sustainability transitions, and establishes a new indicator for progress in renewable electricity transitions in the context of Europe's 2020 targets. It therefore extends the ‘sustainability as a luxury’ debate to include renewable energy. The analysis reveals an ambivalent picture of the role of wealth in renewable energy transitions (RET) in Europe. Indeed, driven by the EU's common renewable energy targets, the findings suggest that RETs are promoted both because, and in spite of the means. [ABSTRACT FROM AUTHOR]

This study analyses household survey data on water and energy climate change mitigation behaviour from eleven OECD countries, and provides new evidence of a complex relationship between climate change concerns and mitigation behaviour. Results confirm other studies that climate change concerns positively influence specific mitigation actions. However we also find evidence that this relationship may be more complex in the sense that adoption of mitigation behaviour may negatively feedback on households' climate change concerns. This effect more likely occurs in ‘environmentally-motivated’ households. Conversely, economic incentives in driving energy and water mitigation work better in non-environmentally-motivated households. This highlights that a portfolio of policies is needed to drive mitigation behaviour. [ABSTRACT FROM AUTHOR]

During the past two decades there has been a shift in the geography of Global Supply Chains (GSCs) from developed countries to China, and more recently from China to successor developing countries in South Asia, Africa and Latin America. The shift in GSC geography influences global greenhouse gas (GHG) emissions because of an energy efficiency and low-carbon technology gap between developed and developing economies. Our simulations indicate that changing GSC geography toward China positively contributed, on average (2001–2008), 919 Mt CO 2 equivalents to global GHG emissions annually. In addition, there are potentially even larger indirect effects, including import-related and transportation-related emissions that are attributable to GSC shift-related improvements in developing world consumption and infrastructure. We then investigate the emission impact of a further GSCs shift toward South Asia, Africa and Latin America. Although the direct impact of such a shift is likely negative due to a lower dependency on coal as well as lower carbon intensities in South Asia, Africa and Latin America relative to China, it is likely that the direct effects are more than offset by the indirect shift-related effects associated with improvements in consumption and infrastructure. Our results have policy implications for future climate change mitigation. [ABSTRACT FROM AUTHOR]

The increasing demand for agricultural products partly due to the high population growth requires agriculture to struggle for productivity improvement. However, productivity search is constrained by environmental preoccupations, raising the question of agricultural development models to be adopted to increase productivity while limiting environmental consequences. This paper examines the role of market orientation by assessing the effect of agricultural commodity export on greenhouse gas emissions relatively to local market oriented agricultural production model. Using panel data from 1986 to 2010 for 136 countries around the world, and accurate instrumental variables technique, the findings suggest that the proportion of primary commodity export in agricultural production increases greenhouse gas emissions. These results are robust to different sources of agricultural export and environmental data, and to the inclusion of additional control variables. [ABSTRACT FROM AUTHOR]

Rephrasing Keynes, we could say we are capable of irreversibly warming the planet because it does not pay a dividend. The aim of this article is to propose a novel policy to decouple the economic system from greenhouse gas emissions by legally redefining the way dividends are computed, thus changing corporations' main objective. The basic idea is to make the pursuit of self-interest by shareholders compatible with the common good, i.e. actual climate change mitigation. In order to distribute income to their shareholders, corporations should curb their greenhouse gas emissions. Such income should be proportional to the companies' achievements, providing a powerful incentive to change production and delivery schemes. Although it implies that the system would no longer revolve around the accumulation of profits, shareholders' income would also depend on economic prosperity and less unequal distribution of resources. Profits would have a secondary role to play, only to the extent of avoiding bankruptcy in the long run. This novel policy, that we propose to call "climatism", as opposed to "capitalism", could be a way to move towards a post-growth or wellbeing economy. [ABSTRACT FROM AUTHOR]

The scientific literature on the co-impacts of low-carbon energy systems—positive and negative side effects—has focused intently on climate mitigation, or climate adaptation. It has not systematically examined the prospective co-impacts of carbon removal (or negative emissions) and solar geoengineering. Based on a large sample of diverse expert interviews (N = 125), and using a sociotechnical approach, in this study we identify 107 perceived co-impacts related to the deployment of carbon removal and solar geoengineering technologies. Slightly less than half (52) were identified as positive co-impacts (38 for carbon removal, 14 for solar geoengineering), whereas slightly more than half (55) were identified as negative co-impacts (31 for carbon removal, 24 for solar geoengineering). We then discuss 20 of these co-impacts in more depth, including positive co-impacts for nature-based protection, the expansion of industry, and reduction of poverty or heat stress as well as negative co-impacts for water insecurity, moral hazard, limited social acceptance and path dependence. After presenting this body of evidence, the paper then discusses and theorizes these co-impacts more deeply in terms of four areas: relationality and risk-risk trade-offs, co-deployment and coupling, intentional or unintentional implications, and expert consensus and dissensus. It concludes with more general insights for energy and climate research, and policy. [ABSTRACT FROM AUTHOR]

Effective responses to climate change may demand a radical shift in human lifestyles away from self-interest for material gain, towards self-restraint for the public good. The challenge then lies in sustaining cooperative mitigation against the temptation to free-ride on others' contributions, which can undermine public endeavours. When all possible future scenarios entail costs, however, the rationale for contributing to a public good changes from altruistic sacrifice of personal profit to necessary investment in minimizing personal debt. Here we demonstrate analytically how an economic framework of costly adaptation to climate change can sustain cooperative mitigation to reduce greenhouse gas emissions. We develop game-theoretic scenarios from existing examples of insurance for adaptation to natural hazards exacerbated by climate-change that bring the debt burden from future climate events into the present. We model the as-yet untried potential for leveraging public contributions to mitigation from personal costs of adaptation insurance, by discounting the insurance premium in proportion to progress towards a mitigation target. We show that collective mitigation targets are feasible for individuals as well as nations, provided that the premium for adaptation insurance in the event of no mitigation is at least four times larger than the mitigation target per player. This prediction is robust to players having unequal vulnerabilities, wealth, and abilities to pay. We enumerate the effects of these inequalities on payoffs to players under various sub-optimal conditions. We conclude that progress in mitigation is hindered by its current association with a social dilemma, which disappears upon confronting the bleak consequences of inaction. [ABSTRACT FROM AUTHOR]

An efficient climate policy is based on cost-benefit analysis (CBA) and equates marginal abatement costs across all forcing agents affecting climate change. In CBA, the agents' contributions to radiative forcing (RF) must be consistently priced (i.e. the social cost of RF, occurring at a specific time, must be the same regardless of the agent causing it). We present a concept that enables doing so. The Social Cost of Forcing (SCF) is the monetary value of the social damage caused by marginal RF at a given instant (Wm − 2 ). Any forcing agent whose temporal decay profile and radiative efficiency are known can be priced based on it. Prices obtained for distinct agents are consistent in CBA, as long as the same SCF and discounting assumptions are applied. Hence, the SCF is a concise way to communicate social cost information: mutually consistent prices for any set of forcing agents can be obtained based on a single Integrated Assessment Model output, the SCF. We explain the theoretical foundations of the concept and illustrate its practical applications with two examples: (1) we derive SCF-based prices for CO 2 and CH 4 , and (2) we estimate the social cost of albedo changes in a boreal forest stand. [ABSTRACT FROM AUTHOR]

The European Union (EU) has developed a strategy to mitigate climate change by cutting greenhouse gas (GHG) emissions and fostering low carbon technologies. However, the risk of implementing unilateral policies is that distortive effects are generated at the global scale affecting world energy prices, international competitiveness and the geographical allocation of carbon intensive production processes. Using a dynamic CGE model, we assess the rate of carbon leakage and adverse impacts on competitiveness in a number of scenarios over the period 2010–2050. According to the model results, we highlight two major issues. First, in the case of a unilateral EU climate policy, carbon leakage and negative effects on competitiveness are quite serious. Anti-leakage measures can only mitigate leakage and adverse economic impacts on competitiveness in a limited way. On the contrary, an optimality analysis addressing the environmental effectiveness, cost-effectiveness and political feasibility of alternative policy solutions reveals that the EU long term decarbonisation strategy by investing in energy efficiency and renewable energy might ensure protection of vulnerable manufacturing activities while enhancing the competitiveness of technologically-advanced industries. [ABSTRACT FROM AUTHOR]

To limit global warming to 1.5 °C, vast amounts of CO 2 will have to be removed from the atmosphere via Carbon Dioxide Removal (CDR). Enhancing the CO 2 sequestration of ecosystems will require not just one approach but a portfolio of CDR options, including so-called nature-based approaches alongside CDR options that are perceived as more technical. Creating a CDR "supply curve" would however imply that all carbon removals are considered to be perfect substitutes. The various co-benefits of nature-based CDR approaches militate against this. We discuss this aspect of nature-based solutions in connection with the enhancement of blue carbon ecosystems (BCE) such as mangrove or seagrass habitats. Enhancing BCEs can indeed contribute to CO 2 sequestration, but the value of their carbon storage is low compared to the overall contribution of their ecosystem services to wealth. Furthermore, their property rights are often unclear, i.e. not comprehensively defined or not enforced. Hence, payment schemes that only compensate BCE carbon sequestration could create tradeoffs at the expense of other important, often local, ecosystem services and might not result in socially optimal outcomes. Accordingly, one chance for preserving and restoring BCEs lies in the consideration of all services in potential compensation schemes for local communities. Also, local contexts, management structures, and benefit-sharing rules are crucial factors to be taken into account when setting up international payment schemes to support the use of BCEs and other nature- or ecosystem-based CDR. However, regarding these options as the only hope of achieving more CDR will very probably not bring about the desired outcome, either for climate mitigation or for ecosystem preservation. Unhalted degradation, in turn, will make matters worse due to the large amounts of stored carbon that would be released. Hence, countries committed to climate mitigation in line with the Paris targets should not hide behind vague pledges to enhance natural sinks for removing atmospheric CO 2 but commit to scaling up engineered CDR. [ABSTRACT FROM AUTHOR]

Rigorous impact evaluations of local REDD+ (reduced emissions from deforestation and forest degradation) initiatives have shown some positive outcomes for forests, while well-being impacts have been mixed. However, will REDD+ outcomes persist over time after interventions have ended? Using quasi-experimental methods, we investigated the effects of one REDD+ project in the Brazilian Amazon on deforestation and people's well-being, including intra-community spillover effects (leakage). We then evaluated to what extent outcomes persisted after the project ended (permanence). This project combined Payments for Environmental Services (PES) with sustainable livelihood alternatives to reduce smallholder deforestation. Data came from face-to-face surveys with 113 households (treatment: 52; non-participant from treatment communities: 35; control: 46) in a three-datapoint panel design (2010, 2014 and 2019). Results indicate the REDD+ project conserved an average of 7.8% to 10.3% of forest cover per household and increased the probability of improving enrollees' well-being by 27–44%. We found no evidence for significant intra-community leakage. After the project ended, forest loss rebounded and perceived well-being declined – yet, importantly, past saved forest was not cleared. Therefore, our results confirm what the theory and stylized evidence envisioned for temporal payments on activity-reducing ('set-aside'): forest loss was successfully delayed but not permanently eradicated. • A local REDD+ project in the Brazilian Amazon promoted win-win outcomes. • Direct payments contributed to deforestation reduction and well-being improvement. • Deforestation resumed after payments ended without retrieving avoided deforestation. • Conservation gains induced from temporary payments were preserved. [ABSTRACT FROM AUTHOR]

The rational choice model of voluntary public good provision predicts that an individual's contribution to climate change mitigation responds negatively to larger contributions by others whereas social norm theory maintains that one's own contribution is positively related to that of others. This paper tests the competing hypotheses empirically using representative data for about 30,000 individuals from 23 European countries. The paper finds that, up to a threshold percentage of others perceived to engage in mitigation, individuals' willingness to engage in mitigation themselves is lower the more other individuals are perceived to engage in such behavior, whereas the relationship is positive when the threshold is passed. Since the actual percentage of others perceived to engage in mitigation is lower than the estimated threshold (30 to 56%) in a number of countries, marginal increases in the percentage of others perceived to behave in a climate-friendly way may backfire by enhancing free-rider behavior. For the social norm to take grip, policy-induced non-marginal increases of perceptions may be required to shift the system past the tipping point. [ABSTRACT FROM AUTHOR]

Activists and scholars increasingly blame neoliberalism for the failure to sharply reduce greenhouse gas emissions, but there is insufficient research that investigates the theoretical link between neoliberalism and climate paralysis. This paper seeks to fill that gap by presenting a coherent account of how neoliberal ideology has constrained policies to address climate change in the United States. As motivation, we first present evidence suggesting more neoliberal countries perform worse in addressing climate change. We then analyze how three tenets of neoliberal ideology—to decentralize democracy, defund public investment, and deregulate the economy—have stymied climate action in the United States. Finally, we discuss the Green New Deal as a decisively anti-neoliberal framework that seeks to wield the power of the federal government to pursue large-scale public investments and binding climate regulations for rapid decarbonization. [ABSTRACT FROM AUTHOR]

Governments worldwide have implemented climate change mitigation policies that aim to encourage abatement by changing agricultural practices. In Australia, farmers can gain carbon credits for sequestering carbon or reducing emissions. In addition to mitigation, these ‘carbon farming’ activities often generate ancillary (co-)benefits, such as creating native habitat or preventing erosion. This paper presents results of an Australia-wide choice experiment, conducted to estimate community values for climate change mitigation and the cobenefits of carbon farming. Values for carbon farming benefits are shown to depend on respondent's opinions about climate change. Respondents who do not believe that climate change is happening have a lower willingness to pay for reducing Australia's greenhouse gas emissions than people who believe climate change is (at least partly) caused by human actions. On average, respondents were willing to pay $1.13/Mt of CO 2 -e reduction. Respondents were willing to pay around $19/ha increase in the area of native vegetation on farmland. Value estimates for reducing soil erosion were not significant. Our results demonstrate that the community benefits from carbon farming extend beyond their effects on climate change mitigation. Future policies should take these positive values for cobenefits into account. [ABSTRACT FROM AUTHOR]

Climate change mitigation requires sustainable energy transitions, but their political dynamics are poorly understood. This article presents a general dynamic model of renewable energy policy with long time horizons, endogenous electoral competition, and techno-political path dependence. We calibrate the model with data on the economics of contemporary renewable energy technologies. In doing so, we discover transition dynamics not present in economy-energy models, which ignore politics, or in formal political economy models, which ignore long-term technological dynamics. We show that the largest effects of partisan ideology on policy occur when the competing parties disagree on the importance of energy policy. In these cases, the less ideological party appeases the more ideological one, while the more ideological party attempts to appease the electorate. The results demonstrate that political dynamics could have large effects on the development of renewable energy and carbon dioxide emissions over time, influencing the ability of countries to reach various climate mitigation trajectories. [ABSTRACT FROM AUTHOR]

Soil organic carbon (SOC) 1 1 SOC: Soil Organic Carbon. plays a crucial role in regulating the global carbon cycle and its feedbacks within the Earth system. Compelling evidence exists that soil carbon stocks have reduced in many regions of the world, with these reductions often associated with agriculture. In a Danish context, research also suggests that soil carbon stocks are declining. The scope of Payment for Ecosystem Service (PES) approaches to effectively and efficiently address climate regulation will depend on the spatial distribution of the carbon assimilation capacity, current land use, the value of avoided emissions and land owners' objectives and preferences in terms of participating in initiatives to increase SOC. We map the carbon sequestration potential under different scenarios, value the potential sequestered carbon in terms of marginal costs of using voluntary agreements with agricultural land managers and compare these to the marginal abatement costs curve used in Danish climate policy. The cost effectiveness of reduced tillage as a climate mitigation PES scheme critically depends on the current debate on the net effects of carbon sequestration in reduced tillage practices. Based on existing IPCC guidelines, we find that reduced tillage has considerable potential for contributing to a cost effective climate mitigation policy. [ABSTRACT FROM AUTHOR]

Wood biomass forms the basis for a variety of products and it represents an important source of technical energy. Woodfuels and forests play an important role for climate change mitigation, by their ability to replace fossil fuel and sequester atmospheric carbon. At the same time, wood extraction is an important driver for deforestation. However, large uncertainties relate to the amount and spatio-temporal pattern of wood use. We here present a comprehensive assessment of wood biomass flows in 11 world regions from 1990 to 2010. We found that global total biomass appropriation (TBA) amounts to 1.81 GtC/year in 1990 and 1.94 GtC/year in 2010 (+ 7%). In 2010, TBA represents 4% of the global forest net primary production. Only 54% of TBA enters socioeconomic systems while 46% remain in forests or represent waste flows. About 56% of economically used wood biomass enters the energy sector. There are considerable regional variations in wood biomass flows among world regions, owing to differences in population, affluence, and area. Global demand for wood is expected to increase in the near future, putting additional pressure to forest ecosystems. We discuss the potential of cascading use of wood as a means to reduce impacts related to resource use. [ABSTRACT FROM AUTHOR]

Forests provide many and large benefits, including cost-efficient climate change mitigation. However international carbon markets have not stimulated the demand for forestry offsets. Domestic market-mechanisms are emerging in many countries and forests could be highly valued through these policies as most of the benefits produced by forests are enjoyed locally. Here, a choice experiment explores drivers of valuation and willingness to pay for forest carbon services in voluntary markets in Mexico by comparing the valuation of citizens from four regions to test geographical preference for projects (n = 645). Findings from multinomial-logit models show valuation of forest carbon services is transferable and citizens would pay more for offsets from projects closer to their homes. Proximate forests provide a range of co-benefits to local users, including environmental services and opportunities for recreation. Factors related to valuation include sense of responsibility, previous knowledge of carbon emissions, previous visits to the sites, regional identification and the valuation of local environmental services (e.g. improvements in local air quality). Knowledge of spatial heterogeneity in valuation of the use of forest services can help to design market-based instruments by identifying highly valued areas for environmental services programs and carbon markets. [ABSTRACT FROM AUTHOR]

While the economic case for carbon pricing is compelling, public support for it remains low. Using a stated-choice experiment with a sample of 6000 German household heads, we examine how their fairness preferences influence support for carbon taxes under different revenue uses. We find that respondents who prefer green spending are more likely to support a carbon tax, but the support diminishes considerably for higher tax rates – in contrast to respondents who support social cushioning. When restricted to options for direct revenue redistribution, Germans prefer lump-sum payments over directing payments to the poorest or the most affected. Preferences over these options depend both on genuinely different concepts of fairness and economic circumstances. Our findings have implications for advancing carbon pricing, as its support can be increased substantially when designed according to citizens' fairness preferences. [ABSTRACT FROM AUTHOR]