Radical Climate Policies
In the presence of strategic complementarities stemming from peer effects in demand or from technological spill-overs, propagation and amplification mechanisms increase the effectiveness of climate policies. This suggests that climate goals can be met with smaller policy interventions. However, if there are multiple equilibria, radical and more ambitious climate policies are needed to shift the economy from a high-emissions to a low-emissions path. Once the radical shift has taken place the transformative policies can be withdrawn. More generally, such policies can set in motion social, technological, and political tipping points. The rationale for such policies is strengthened due to key households, corporations and institutions being at the centre of networks, and thus radical climate policies should identify those agents and leverage them. The proposals offer a complementary perspective to scholars that have emphasised insights from the literature on early warning signals to advocate sensitive intervention points to get more effective and more transformative climate policies.
| Main Authors: | , |
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| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
World Bank, Washington, DC
2022-10
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| Subjects: | PEER EFFECTS, LEARNING BY DOING, STRATEGIC COMPLEMENTARITIES, MULTIPLE EQUILIBRIA, RADICAL POLICIES, SOCIAL TIPPING POINT, POLITICAL TIPPING POINT, POLITICAL ECONOMY, CLIMATE POLICY INTERVENTIONS, EMISSION REDUCTION, STRATEGIC ENVIRONMENTAL POLICY, TRANSFORMATIVE ENVIRONMENTAL POLICY, ENVIRONMENTAL REFORM, HIGH-EMISSION REFORM, |
| Online Access: | http://documents.worldbank.org/curated/en/099555310182256701/IDU04f49424b02fbb048860a9300d63fc43365c3 http://hdl.handle.net/10986/38185 |
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