Policies for a climate-neutral industry: Lessons from the Netherlands

Brilé Anderson, Emile Cammeraat, Antoine Dechezleprêtre, Luisa Dressler, Nicolas Gonne, Guy Lalanne, Joaquim Guilhoto and Konstantinos Theodoropoulos
Additional contact information
Brilé Anderson: OECD
Emile Cammeraat: OECD
Guy Lalanne: OECD
Konstantinos Theodoropoulos: OECD

No 108, OECD Science, Technology and Industry Policy Papers from OECD Publishing

Abstract: This paper presents a comprehensive assessment of the policy instruments adopted by the Netherlands to reach carbon neutrality in its manufacturing sector by 2050. The analysis illustrates the strength of combining a strong commitment to raising carbon prices with ambitious technology support, uncovers the pervasiveness of competitiveness provisions, and highlights the trade-off between short-term emissions cuts and longer-term technology shift. The Netherlands’ carbon levy sets an ambitious price trajectory to 2030, but is tempered by extensive preferential treatment to energy-intensive users, yielding a highly unequal carbon price across firms and sectors. The country’s technology support focuses on the cost-effective deployment of low-carbon options, which ensures least-cost decarbonisation in the short run but favours relatively mature technologies. The paper offers recommendations for policy adjustments to reach the country’s carbon neutrality objective, including the gradual removal of exemptions, enhanced support for emerging technologies and greater visibility over future infrastructure plans.

Keywords: Carbon pricing; Climate change policy; Technology support (search for similar items in EconPapers)
JEL-codes: L52 O38 Q54 Q55 Q58 (search for similar items in EconPapers)
Date: 2021-04-15
New Economics Papers: this item is included in nep-ene, nep-env, nep-reg and nep-tid
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:oec:stiaac:108-en

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