Climate Mitigation Policy in Denmark: A Prototype for Other Countries

58 Pages Posted: 24 Feb 2021

See all articles by Nicoletta Batini

Nicoletta Batini

International Monetary Fund (IMF)

Ian Parry

International Monetary Fund (IMF)

Philippe Wingender

International Monetary Fund (IMF) - Fiscal Affairs Department

Multiple version iconThere are 2 versions of this paper

Date Written: 2021

Abstract

Denmark has a highly ambitious goal of reducing greenhouse gas emissions 70 percent below 1990 levels by 2030. While there is general agreement that carbon pricing should be the centerpiece of Denmark’s mitigation strategy, pricing needs to be effective, address equity and leakage concerns, and be reinforced by additional measures at the sectoral level. The strategy Denmark develops can be a good prototype for others to follow. This paper discusses mechanisms to scale up domestic carbon pricing, compensate households, and possibly combine pricing with a border carbon adjustment. It also recommends the use of revenue-neutral feebate schemes to strengthen mitigation incentives, particularly for transportation and agriculture, fisheries and forestry, though these schemes could also be applied more widely.

JEL Classification: Q480, Q540, Q580, H230

Suggested Citation

Batini, Nicoletta and Parry, Ian and Wingender, Philippe, Climate Mitigation Policy in Denmark: A Prototype for Other Countries (2021). CESifo Working Paper No. 8895, Available at SSRN: https://ssrn.com/abstract=3791864

Nicoletta Batini (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States

Ian Parry

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Philippe Wingender

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States
202-623-9831 (Phone)
202-623-4199 (Fax)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
20
Abstract Views
65
PlumX Metrics