Carbon dioxide inflation also CO2 inflation (carbon-induced inflation)

A term that emerged around 2005 to describe the fact that – sooner or later, in order to safeguard the quality of life in all countries, limits will be set for carbon dioxide (= CO2) emissions, forcing – companies to invest in new technologies (clean technologies) that reduce emissions of CO2 and other greenhouse gases (in addition to CO2, which is the international reference level); reference level], this also applies to methane [CH4], nitrous oxide [laughing gas, N2O], partially halogenated and perfluorinated hydrofluorocarbons [HFCs/HFCs] and sulfur hexafluoride [SF6]), with the consequence that – the increased expenditure for these investments, which are hardly accompanied by a capacity expansion effect, must be passed on to consumers via higher prices, which reduces their purchasing power. – According to several reports of the World Bank, carbon dioxide inflation can possibly be mitigated, but not avoided, by means of worldwide emissions trading (if this should come about). However, in order to avoid sudden price increases caused in this way, regulations reducing pollutant emissions should be tightened gradually after their introduction (policy of gradual increases). – In detail, the issues related to carbon dioxide inflation have become a special area of interdisciplinary research that has received much attention in the meantime. – See biofuels, energy-inflation link, petroleum-inflation, petroleum-food link, inflation compensation, purchasing power drain, climate-inflation,
Wage, indexed, wage-price spiral, oil price, oil price shocks, petrodollar, protein inflation, commodity prices, shocks, structural, electricity price, greenhouse gas emissions trading, second-round effects.

Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/