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A. Hagen and A. Vogt - Background Paper Forum Climate Economics 9

Pittel, Karen, Franziska Holz, Sonja Peterson, Dawud Ansari, Carlo Gallier, Achim Hagen, Marcel Lumkowsky, Donia Mahabadi, Angelika Vogt, und Marie-Theres von Schickfus. „Chances and Obstacles to Strengthening the Paris Agreement – The Case of Resource-Rich Countries". Background Paper Forum Climate Economics 9. ifo Institut für Wirtschaftsforschung, 2021.

 

This background paper for the Forum Climate Economics 9 is based on current research projects from the BMBF funding priority Economics of Climate Change. The projects deal with challenges and chances that climate protection and the Paris Agreement entail on an international level. The background paper presents scientific findings that focus on the fundamental challenges resource-rich countries face with respect to decarbonizing their economy. It shows a rather skeptical assessment of the current climate ambition levels of many of these countries as well as of the expectations with respect to reaching not only the current NDCs but also climate neutrality in 2050. To overcome their resource dependencies, these countries need economic perspectives beyond fossil fuel exports. Economic diversification can be a means to reduce the dependency and volatility risk from the resource sector and to profit from higher value added in, for example, manufacturing. Different policy options are presented that aim at incentivizing higher climate ambitions and address the demand as well as the supply of fossil fuels. Especially low-income resource-rich countries will, however, need further measures to enable and incentivize them to increase their climate ambition.
The Forum Climate Economics is a series of events of the Dialogue on the Economics of Climate Change on current topics of climate and energy policy. As a platform for intensifying the exchange between science and practice, the Dialogue accompanies the BMBF funding priority Economics of Climate Change with its currently 29 projects on economic aspects of climate change. This background paper is part of the activities of the theme “International Climate Policy”. Four projects of the funding priority have contributed to this paper in collaboration. They organize the Forum Climate Economics 9 under the auspices of ifo Institute – Leibniz Institute for Economic Research at the University of Munich.