A net-zero target compels a backward induction approach to climate policy

Geoffroy Dolphin (), Michael Pahle, Dallas Burtraw and Mirjam Kosch
Additional contact information
Geoffroy Dolphin: Resources for the Future
Michael Pahle: Potsdam Institute for Climate Impact Research (PIK)
Dallas Burtraw: Resources for the Future
Mirjam Kosch: Potsdam Institute for Climate Impact Research (PIK)

Nature Climate Change, 2023, vol. 13, issue 10, 1033-1041

Abstract: Abstract Jurisdictions worldwide increasingly affirm their contributions to the Paris Agreement by pledging net-zero targets. We argue that delivering on net-zero targets compels a backward induction approach to climate policy, which stipulates that maximizing credibility should be the objective of policy pathways design. This implies choosing policies that strike a suitable balance between building commitment and attaining cost efficiency. Our argument rests on the premise that private investments play a key role for net zero, and that getting expectations right—through credible commitment to a policy pathway—is more relevant than getting the prices right to align the investments with net zero. We sketch the main elements for a regulatory strategy to put this approach into action.

Date: 2023
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.nature.com/articles/s41558-023-01798-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nat:natcli:v:13:y:2023:i:10:d:10.1038_s41558-023-01798-y

Ordering information: This journal article can be ordered from
https://www.nature.com/nclimate/

DOI: 10.1038/s41558-023-01798-y

Access Statistics for this article

Nature Climate Change is currently edited by Bronwyn Wake

More articles in Nature Climate Change from Nature
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().