Technology Beats Capital - Sharing the Carbon Price Burden in Federal Europe

Make or brake — Rich states in voluntary federal emission pricing

“…On the other hand, Denmark is a relatively small country that is wealthy and has many wind-farms. Roolfs et al (2020) have analyzed heterogeneity in production technologies using a numerical model calibrated to the EU. They find that technological heterogeneity can change the results in terms of the ranking of feasible federal prices towards emission intensive states.…”