A recent study published in the journal Science has shed light on the effectiveness of 1,500 climate policy measures implemented across 41 countries over the past two decades. The research team, comprised of experts from various institutions, provides a comprehensive evaluation of these policies, revealing both successes and failures in emissions reductions.
The study findings highlight a concerning reality – many climate policy measures have fallen short of achieving the necessary scale of emissions reductions. Only 63 cases of successful climate policies were identified, each resulting in an average emission reduction of 19%. The key characteristic of these successful cases is the inclusion of tax and price incentives in a well-designed policy mix.
One of the key takeaways from the study is that the right mix of policy instruments is crucial for achieving significant emission reductions. While there has been much debate surrounding which climate policy instruments are most effective, the study emphasizes the importance of complementary policy measures. For example, subsidies or regulations alone are insufficient; only when combined with price-based instruments like carbon and energy taxes do they deliver substantial emission reductions.
The researchers point to specific examples to illustrate their findings. Bans on coal-fired power plants or combustion engine cars, when implemented alone, do not lead to major emissions reductions. Successful cases, such as those in the UK and Norway, demonstrate that tax or price incentives are essential for driving significant emission reductions in these sectors.
The study evaluated a wide range of policy interventions using a new OECD database, representing the most comprehensive inventory of climate policies to date. By combining machine learning methods with established statistical analyses, the research team was able to identify the measures that achieved large-scale emissions reductions. This detailed impact evaluation provides insights into effective policy combinations, tailored to specific sectors and development levels of countries.
The study’s interactive Climate Policy Explorer offers detailed insights into specific countries, sectors, and policy measures. For example, China’s pilot emissions trading systems in the industrial sector, combined with reduced fossil fuel subsidies and stronger financing incentives for energy efficiency, led to significant emissions reductions. In the electricity sector, the UK’s implementation of a minimum carbon price, subsidies for renewable energy, and a coal phase-out plan resulted in major emission reductions. The US also saw significant emissions reductions in the transportation sector through a mix of tax incentives and subsidies for low-emitting vehicles.
The study’s findings underscore the importance of well-designed policy mixes in driving effective climate action. While the debate around climate policy instruments continues, the research highlights the need for a tailored approach that considers specific sectors and country contexts. This knowledge is crucial in supporting policymakers and society in the transition to climate neutrality.