Work Package 4: Institutional dimensions and incentive issues


Climate policy overlaps with various other policy areas like energy, transport or industry. Thus, the achievement of the 2020 climate targets requires a stronger integration of climate change issues in other policy areas. This work package deals with questions of policy coherence, i.e. on the one hand to what extent there are synergies between climate policy and other policy instruments. This regards for example approaches for the support of renewable energies. On the other hand policy areas will be analysed that are in conflict with climate policy. Emphasis in this regard will be put on measures and public programs to stimulate the economy and especially certain industrial sectors (e.g. car manufacturing) as a reaction to the current crisis and their potentially adverse impact on mitigation strategies.

A second research question in this work package will be the institutional settings to ensure the credibility of carbon markets and the incentives for abatement measures. This includes a discussion of measures that can reduce the volatility of carbon prices (upper and lower boundaries) and thus increase security for regulated industries and the stability of carbon markets.