Combining climate policy instruments: How the Swiss do it and what it delivers
Project funded by own resources
Project title Combining climate policy instruments: How the Swiss do it and what it delivers
Principal Investigator(s) Hintermann, Beat
Project Members Žarkovic, Maja
Organisation / Research unit Departement Wirtschaftswissenschaften / Public Economics / Public Finance (Hintermann)
Project start 01.01.2018
Probable end 31.12.2020
Status Completed
Abstract

Swiss climate policy consists of three regulatory instruments for greenhouse gas emissions reduction: A CO2 levy, the Swiss Emissions Trading System (CH EHS) and an additional program for medium-sized plants that is labeled ``nonEHS'' and consists of command-and-control elements plus a sizeable abatement subsidy. Our paper informs about this tripartite climate policy, which is unique in the international context. Second, we estimate the differential impact of the CH EHS and the nonEHS program on plants' emissions. Our empirical strategy exploits a policy change in 2013 that instituted a mandatory emissions trading system for a subset of previously regulated plants. We find that the nonEHS outperforms the CH EHS for a minority of plants, but that on average, the two programs result in similar abatement efforts despite very different financial incentives. Plants that previously engaged in abatement efforts continue to do so even after the financial incentives were reduced by an order of magnitude.

Keywords Climate policy, emissions tax, emissions trading, subsidies, command-and-control, Switzerland.
Financed by University funds
Other funds
Follow-up Project of... 4021706 FV-63 Estimating the Effect of Climate Policy on Swiss Firms

Published results ()

  ID Autor(en) Titel ISSN / ISBN Erschienen in Art der Publikation
4598067  Hintermann, Beat; Zarkovic, Maja  A carbon horse race: Abatement subsidies vs. permit trading in Switzerland      Publication: Discussion paper / Internet publication 
   

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18/08/2022