Instrument Effectiveness in the International Climate Discourse

Climate change is one of the most pressing challenges for mankind. The window of opportunity to attain the Paris Agreement goals that aim to limit the global rise of temperatures is closing, despite all national and international efforts. In terms of policy instruments employed by governments to address climate change, in many countries we observe the proliferation of carbon pricing, while fossil fuel subsidies remain an integral part of the policy mix. This paper analyses the effectiveness of carbon pricing instruments and fossil fuel subsidies within the context of the international climate discourse. The paper employs insights from the instrument choice perspective and examines the rationale, the evolution and effectiveness of both carbon pricing and fossil fuel subsidies. In conclusion it offers a critical appraisal and policy suggestions.