The Security Dividend of Climate Policy

Authors

• Beaufíls
• T.
• Jakob
• M.
• Kalkuhl
• M.
• Richter
• P.M.
• Spiro
• D.
• Stern
• L.
• Wanner
• J.

Publication Date

JEL Classification

Key Words

Related Topics

• By reducing reliance on fossil fuels, EU climate policy substantially lowers Russia’s financial strength, thereby limiting its military capabilities to sustain its aggression on Ukraine and beyond.
• We provide estimates for the security dividend of EU climate policy.
• A one-euro reduction in oil consumption in the EU results in a security dividend of 37 cents (central estimate).
• Based on the security dividend alone, a significant carbon price (central estimate of 60 euros per ton of CO2) on oil consumption is justified – in addition to its climate, terms-of-trade, and local health benefits.
• Ambitious EU climate policy that reduces demand for oil and natural gas should be seen as an important pillar of the European security architecture, complementing military spending, diplomatic efforts, and continued support to Ukraine.

Kiel Institute Expert