Hof et al. (2021): The Impact of Socio-Economic Inertia and Restrictions on Net-Negative Emissions on Cost-Effective Carbon Price Pathways
Andries F. Hof, Kaj-Ivar van der Wijst, Detlef P. van Vuuren IN: Frontiers in Climate Vol. 3, https://doi.org/10.3389/fclim.2021.785577
Model-based scenarios are used to inform policymakers about emissions pathways and cost-effective carbon prices. Many of these scenarios are based on the Hotelling rule, assuming that a carbon price path increasing with the interest rate leads to a cost-effective strategy. The robustness of this rule was tested by using experiments with plausible assumptions for learning by doing, inertia in reducing emissions, and restrictions on net-negative emissions.