Content
The Paris Climate Agreement implies a rapid transformation of key sectors of our This transformation will largely be driven by sector specific policy instruments like renewable remuneration schemes, efficiency standards and networks, or innovation support for climate friendly production technologies. They are complemented by financing instruments and carbon pricing for example with emission trading.
We will assess these policy instruments using both generic methods and sector specific case studies:
• A structure to classify policy instruments according to their impact on decision processes of individuals and firms (satisficing, optimizing, strategizing).
• An understanding of policy objective and target, economic and statutory incidence, and jurisdiction.
• Methodologies to evaluate effectiveness of policy instruments and packages. This includes an assessment impacts regulatory credibility and risk on financing decisions. We also consider distributional impacts on public acceptance, and incentives for innovation and adoption of climate friendly practices, technologies and business models.
From the perspective of decision makers in industry and finance we will explore implications for firm level decisions. From the perspective of public policy makers evaluate different policy options and their interactions.
