Uncertainty management and the dynamic adjustment of Deep Decarbonization Pathways
Sandrine Mathy (),
M. Fischedick and
Working Papers from Grenoble Applied Economics Laboratory (GAEL)
Contrary to 'static' pathways that are defined once for all, this article deals with the need for policymakers to adopt a dynamic adaptive policy pathway for managing decarbonization over the period of implementation. When choosing a pathway as the most desirable option, it is important to keep in mind that each decarbonization option relies on the implementation of specific policies and instruments. But given structural, effectiveness and timing uncertainties specific to each policy option they may fail in delivering the expected outcomes in time. The possibility of diverging from an initial decarbonization trajectory to another one without incurring excessive costs should therefore be a strategic element in the design of an appropriate decarbonization strategy. The article relies on initial experiences in France and Germany on decarbonization planning and implementation to define elements for managing dynamic adjustment issues. Such an adaptive pathway strategy should combine long-lived incentives to form consistent expectations, as well as adaptive policies to improve overall robustness and resilience. We sketch key elements of a monitoring process based on an ex ante definition of leading indicators that should be assessed regularly and combined with signposts and trigger values at the subsector level.
Keywords: MITIGATION SCENARIO; FRANCE; GERMANY; DYNAMIC ADAPTATIVE PATHWAYS; DECARBONIZATION STRATEGY (search for similar items in EconPapers)
JEL-codes: Q41 Q42 Q47 Q48 (search for similar items in EconPapers)
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Working Paper: Uncertainty Management and the Dynamic Adjustment of Deep Decarbonization Pathways (2018)
Journal Article: Uncertainty management and the dynamic adjustment of deep decarbonization pathways (2016)
Working Paper: Uncertainty management and the dynamic adjustment of Deep Decarbonization Pathways (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:gbl:wpaper:2016-03
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