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Shifting Paradigms in Carbon Pricing

Authors:	Brigitte Knopf Kerstin Burghaus Christian Flachsland Michael Jakob Nicolas Koch Ottmar Edenhofer

Institution:	1.Generalsekret?rin,Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH,Berlin,Germany;2.Task Force Public Economics,Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH,Berlin,Germany;3.Arbeitsgruppe Governance,Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH,Berlin,Germany;4.Nachhaltiges Ressourcenmanagement u.a.,Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH,Berlin,Germany;5.Direktor,Mercator Research Institute on Global Commons and Climate Change (MCC) gGmbH,Berlin,Germany

Abstract:	The first pillar of the old paradigm of carbon pricing is the assumption that an emissions trading scheme is the most cost-efficient way to achieve a certain emission reduction target. However, it has become obvious that the old paradigm is unable to solve a number of challenges, e.g. market participants’ myopia.

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