Europe: Climate Neutral by 2050?

Many economists are in favor of a more muscular European climate policy. This is shown by the results of the 35th ifo and FAZ Economists Panel. A large majority supports an extension of EU emissions trading to cover the transport and heating sectors as well as additional sector-specific investments, especially in buildings and transport. Revenue from carbon pricing should be returned to citizens as a per capita lump sum. There is little support for a greening of the ECB’s monetary policy.