Fabian Naumann

• Climate change and its effects are accelerating, with climate-related disasters surging. To tackle climate change, the reduction of emissions by means of climate policy is vital. As such, the purpose of the present dissertation is to provide deeper insights about market-based and non-market-based environmental state interventions. Using regression analyses, the empirical part of this doctoral thesis investigates the adverse effect of financial subsidy payments on the energy market. Findings indicate that subsidized renewables may depress the profitability of energy storages and lower their own market values. Research projects demonstrate that carbon pricing is a promising solution to counteract the adverse effect. The theoretical part of this doctoral thesis examines the implementation of a unilateral price floor in emissions trading schemes and emissions cap negotiations. Results suggest that, under certain conditions, i) a unilateral price floor can be welfare-enhancing and ii) negotiations can achieve the socially optimal emissions cap. The dissertation helps provide a better understanding of climate policy design and emphasizes the advantage of carbon pricing as a market-based approach.