ifo Researcher Pittel Praises Expert Opinion on Climate Policy
The ifo researcher Karen Pittel praised the special report of the German Council of Economic Experts (SVR) on climate policy. "It is good that the SVR is urging the introduction of an internationally coordinated CO2 price. It is equally important to note that in an emergency it is better for national governments to go it alone than to do nothing," said the head of the ifo Centre for Energy, Climate and Resources in Munich on Friday.
Pittel added that a CO2 price should not be added to the existing tax, duty and levy system. Rather, a reform of the overall system is necessary so that the steering effect can fully unfold.
The fact that the social dimension of CO2 pricing is being discussed should be viewed positively. The measure should not place a disproportionate burden on lower income groups. However, the system of a uniform CO2 pricing must not be restricted in order to achieve this.
Economic theory did not lead to a clearly correct price level, estimates diverged widely, the ifo researcher explained. For this reason, the level of the CO2 price in the case of a CO2 tax would have to be determined on the basis of the framework conditions under which the tax would be levied, for example nationally or together with several member states.
