A Guide to Assessing the Political Economy of Domestic Climate Change Governance

Abstract

Despite clear scientific evidence that swift and ambitious climate action is necessary at the national level, many countries, particularly those with high emissions and GDP, are failing to implement policies to curb their climate impact. Even with high incomes, access to technology, policy expertise, and capacity to adapt these countries face a massive roadblock to avoiding the human suffering and immense economic, social, and ecological costs that will result from unchecked climate change – political will. This working paper provides guidance and a methodology for decision-makers, civil society, and donors to assess the political and governance challenges that different climate actions are likely to encounter at the national level. With these insights, they can focus on the best approaches for enacting ambitious policies that provide visible benefits and are hard to overturn.

Overview of Political Economy Analysis Frameworks in the Area of Climate Governance and Key Issues to Consider

“…For a number of years there have been calls for greater attention to political economy in tackling climate change and development outcomes (Naess et al, 2015, p. 535;Tanner & Allouche 2011;Fankhauser et al 2015). Political economy analysis is important as it can be used to assess the factors that may enable or constrain implementation of climate change policies and actions and sustain political commitment (Worker & Palmer, 2020). A framework can guide the process of political economy analysis, identifying relevant stakeholders, their incentives and motives, and other structural factors.…”

“…This rapid review summarises several such frameworks specifically aimed at climate governance issues developed in recent years, some of these also include useful guidance and steps on the implementation of the framework. However, although the literature base is expanding it is still relatively limited (Laws & Marquette, 2018), especially on the practical application of such frameworks (Worker & Palmer, 2020;Lamb & Minx, 2020). This rapid review draws on both academic and non-governmental organisation literature.…”

“…• Most political economy analysis frameworks for climate governance include structural and institutional elements (i.e. political, social, environmental, and economic conditions that are unlikely to change in the short term) as well as an analysis of actor/stakeholder interests, incentives, and power relations (Naess et al, 2015;Worker & Palmer, 2020;Lamb & Minx, 2020).…”

“…• Ideas and narratives are also important factors in political economy analysis of climate change, as they can shape worldviews, social and individual identities, and how decisionmakers perceive and respond to the problem (Lamb & Minx, 2020). Informal and formal rules and norms are also important (Worker & Palmer, 2020). The role of the international political economy in shaping outcomes at the national and sub-national level may also be considered (Naess et al, 2015).…”

“…• Some of the specific (but common) climate issue dimensions in the frameworks identified include: the evidence base; policy framework; awareness and understanding of stakeholders; political commitment; participation and influence of key stakeholders; institutional capacity; finance and investment in climate action (Gogoi & Harshita, 2018;World Bank, 2021;Worker & Palmer, 2020).…”