Exploiting Synergy of Carbon Pricing and Other Policy Instruments for Deep Decarbonization

Abstract

Mathias Kirchner is a senior scientist at the Center for Global Change and Sustainability at the University of Natural Resources and Life Sciences, Vienna, where he leads the Foresight group. His research focuses on sustainable transformation pathways. He enjoys working in interdisciplinary research teams to investigate a diverse range of sustainability issues ranging from climate change impacts and land use (applying integrated modelling frameworks) to equity effects of green tax reforms (applying macroeconomic models).

Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth Assessment Report of the Intergovernmental Panel on Climate Change, Chapter 11

“…Clear and firm emission reduction caps towards 2050 are essential for sending strong signals to businesses. However, many researchers recognise that complementary policies must be developed to set current production and consumption patterns toward a path consistent with achieving the Paris Agreement goals as cap-andtrade or carbon taxes are not enough (Schmalensee and Stavins 2017;Vogt-Schilb and Hallegatte 2017;Bataille et al 2018b;Kirchner et al 2019). In this broader policy context, proceeds from pricing schemes can be used to support the deployment of options with near-term abatement costs that are too high to be incentivised by the prevailing carbon price, but which show substantial cost-reduction potential with scale and learning, and to ensure a just transition (Wang and Lo 2021).…”

Strategies and Governance for Implementing Deep Decarbonization Plans at the Local Level

“…It can also enable partners to help with implementing a community-wide strategy [20]. Another form of engagement is advocacy, where local government works with other actors such as governments, utilities, and other sectors to encourage them to apply their regulatory and investment tools to support zero emissions outcomes [1,21,22]. Participation in regional, national, and international networks of cities that promote climate action can help cities in their decarbonization processes [1,18,23].…”

“…Policy can directly require the development, improvement, and/or adoption of efficient and low-carbon technologies, or it can provide incentives for investment in them or consumer adoption of them [32][33][34]. Policy tools must be flexible, transparent, and collaborative in order to yield legitimate social acceptability and deepened trust among parties [22,34]. Not all policy tools are accessible to local governments and actors because of the limited jurisdiction of municipal governments [1].…”

The Cost of Undisturbed Landscapes

“…In consequence, biomass-fired plants are operating at or close to capacity throughout the scenarios considered. 4 Biomass (subsidized) A C /MWh 6.50 6.50 6.50 6.50 † † own assumption Future CO 2 prices impact renewables deployment [4,31] and affect the results of our analysis.…”