Need to cut CO2 emissions: Prices will not be enough at all

CO 2 emissions (by the world, China, the OECD and Europe) are increasing much faster than what would be consistent with the international climate agreements. "Prices" can first be used to reduce CO 2 emissions, in particular: A taxation of CO 2 that drives up the prices of fossil fuels and of goods and services that use fossil fuels; Lower interest rates on "green" financing , which contributes to the energy transition , than on other financing. Prices should obviously also be used, but it also has to be pointed out that these "price signals" cannot be enough to stop CO 2 emissions in 2050. First, the price sensitivity of CO 2 emissions is not very high; second, an infinite price of CO 2 would be needed to completely stop CO 2 emissions; third, investment has proven to be relatively insensitive to interest rates. Most of the adjustment will therefore have to be done not by "price signals" but by climate regulations.