Non-Price Policies for Addressing Climate Change: The Global Experience

Abstract

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.