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Non-Price Policies for Addressing Climate Change: The Global Experience
Abstract
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This paper analyses the non-price policy measures that aim to lower carbon emissions across the G20 countries. A comprehensive range of non-price policies is mapped across sectors, objectives, and targets, uncovering substantial heterogeneities and complexities. The paper underlines the difficulties in assessing effectiveness and comparability of non-pricing mechanisms vis-à-vis explicit ones such as carbon taxes. A cross-country assessment of sequencing and stringency patterns, along with the impact of and experiences with non-pricing policies, is also undertaken. The findings point to critical gaps and a lack of rich data and hard evidence on non-pricing policies. This impedes evaluations of their effectiveness in reducing emissions. We conclude that a balance of price and non-price measures might be the most suitable for global coordination of climate action.
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The Centre for Social and Economic Progress (CSEP) is an independent, public policy think tank with a mandate to conduct research and analysis on critical issues facing India and the world and help shape policies that advance sustainable growth and development.