The Economics of Climate Change Policies : Physica : 9783790820775 : 3790820776 : 06 Oct 2008 : In its latest Assessment Report, the Intergovernmental Panel on Climate Change (IPCC, 2007) projects that without further action the global average surface t- perature would rise by a further 1. 8?4. 0°C until the end of this century. But even if the rise in temperature could be limited to the lower end of this range, irreversible and possibly catastrophic changes are likely to occur. Consequently, the protection of the earth's atmosphere requires substantial efforts to reduce CO and other green- 2 house gas emissions ? especially in countries with very high per capita emissions. To limit the imminent rise in temperature, in the Kyoto-Protocol, the European Union has committed itself to reducing the emissions of greenhouse gases by 8% up to 2008?2012 compared to 1990 levels. Within the EU burden sharing agr- ment, some countries have to achieve even higher emissions reductions. Germany was a