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OECD Working Paper Analyzes Cost-Efficiency of German Climate Policy

OECD12 September 2012: A working paper by the Organisation for Economic Co-operation and Development (OECD), titled "Climate Change Policies in Germany: Make Ambition Pay," discusses the cost-efficiency of Germany's climate change policy and offers suggestions for reforms.

The paper analyzes Germany's greenhouse gas (GHG) emissions policies and the finding that the country remains one of the main GHG emitters in the OECD resulting from a carbon intensive energy mix. The paper discusses Germany's climate change policy from a cost-efficiency perspective and proposes establishing a clear carbon price in all sectors of the economy and phasing out environmentally harmful subsidies. Finally, the paper discusses how Germany can retain green growth by focusing on encouraging competition in the energy sectors and the further stimulation of eco-innovation. [Publication: Climate Change Policies in Germany: Make Ambition Pay]