Groundbreaking Evaluation of Climate Policy Measures Over Two Decades

Posted by Cathy Orlando on August 30, 2024 in Laser Talk

IMAGE SOURCE: Stechemesser et al. “Climate policies that achieved major emission reductions: Global evidence from two decades.” Science, https://www.science.org/doi/10.1126/science.adl6547, 23 Aug, 2024

Summary: In August 2024, researchers published the first global evaluation of 1,500 climate policies, revealing most failed to reduce emissions significantly. Only 63 policies succeeded, achieving 19% reductions on average. The study emphasizes that policy mixes, especially those with tax and price incentives, are essential for effective climate action. Taxation is a notable exception as a policy that can achieve significant emissions reductions by itself across all sectors.

Full text: In late August 2024, researchers at the Potsdam Institute and others published a groundbreaking study in Science, presenting the first comprehensive global evaluation of 1,500 climate policy measures across 41 countries and six continents.

This unprecedented analysis spans over two decades of climate action (1998-2022) and reveals a stark reality: most policy measures have failed to deliver the necessary emission reductions. Only 63 policies achieved success, with an average reduction of 19% in emissions. (1) (2)

The study highlights the critical role of well-designed policy mixes, especially those that include tax and price incentives. For instance, bans on coal plants or combustion engines by themselves have limited impact. However, when combined with tax or price incentives, these policies can result in significant emission reductions.

Notably, taxation stands out as the only policy that is effective on its own.

Interestingly, the findings indicate that while pricing is a key factor in developed economies, subsidies often play a complementary role, especially when combined with pricing measures.

The study also highlights that policy mixes, particularly those including pricing mechanisms, are essential for achieving significant emission reductions. Researchers conclude that in a mix of policies, pricing is the complement that yields the greatest emissions reductions.

Detailed analysis can be found at the Potsdam Institute’s climate policy explorer (3).

REFERENCES

1. Annika Stechemesser, Nicolas Koch, Ebba Mark, Elina Dilger, Patrick Klösel, Laura Menicacci, Daniel Nachtigall, Felix Pretis, Nolan Ritter, Moritz Schwarz, Helena Vossen, and Anna Wenzel. (August 2024). Climate policies that achieved major emission reductions: Global evidence from two decades Science
  https://www.science.org/doi/10.1126/science.adl6547
2. Potsdam Institute for Climate Impact Research (PIK). (August 2024). What works: Groundbreaking evaluation of climate policy measures over two decades. https://www.pik-potsdam.de/en/news/latest-news/what-works-groundbreaking-evaluation-of-climate-policy-measures-over-two-decades