Decarbonizing economies through carbon pricing - is there an ideal policy mix? - Development and relevance of a feasible emission mitigation strategy for China

Explicit and implicit carbon pricing are indispensable to reduce emissions and direct economies towards carbon neutrality. This report aimed to investigate whether there is a policy mix that is the most effective in emission reduction. A cluster analysis showed that stringent market-based instruments such as the CO2 tax are substantial for effective emission abatement. In a second step, a political feasibility analysis was conducted to investigate how China can improve their environmental policy framework further. This showed the importance of leveraging both explicit and implicit pricing when setting up successful, national carbon pricing strategies