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Climate Change Policies in Germany: Make Ambition Pay

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Caroline Klein
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This paper analyzes the effectiveness of climate change policies in Germany while highlighting the need for further measures in light of shifting policy goals regarding nuclear phase-out. Focusing on economic aspects, the author explores options for improvement and discusses reforms that would increase Germany's benefits from low-carbon growth. Suggested measures to reduce carbon emissions and encourage further growth in renewable energy include carbon pricing; high levels of investment and public financial support; and the phasing out of environmentally harmful subsidies.