“Unlocking the Secrets of Effective Climate Policies: Insights from Global Research”

A groundbreaking study led by Climate Econometricians at the University of Oxford, the Potsdam Institute for Climate Impact Research (PIK), and the Mercator Research Institute on Global Commons and Climate Change (MCC) has provided crucial insights into the effectiveness of climate policies worldwide. The study, which analyzed 1,500 observed policies from a high-quality OECD climate policy database, is the first of its kind to compare and rank global policy interventions in this manner.

Using a methodology developed by Climate Econometrics at The Institute for New Economic Thinking at the Oxford Martin School (INET Oxford), the researchers measured ’emission breaks’ that occurred following policy interventions. The results revealed that out of 1,500 policies implemented across four sectors, 41 countries, and two decades, only 63 successful policy interventions with significant effects were identified, resulting in a reduction of total emissions between 0.6 and 1.8 Gt CO2.

However, the study authors emphasize that policymakers can learn from these successful cases to guide future climate policy decisions. The data collected has been made available to policymakers globally, along with a sector-by-sector, country-by-country data visualization dashboard.

The study concluded that climate policies are more effective when implemented as part of a mix, with combining different policy instruments yielding larger effects. Additionally, the research highlighted the varying needs of developed and developing countries in terms of climate policy, with carbon pricing being more effective in developed countries and regulation in developing countries.

The study also pointed out that focusing on the 63 effective climate policies identified in the research could help close the emissions gap to meet the Paris Agreement targets by 26% – 41%. The authors stressed the importance of scaling up successful policy practices to other sectors and regions to accelerate climate mitigation efforts.

Examples from the UK and USA showcased successful policy interventions in the electricity and transport sectors, respectively, but also highlighted the challenges in other sectors. Dr. Anupama Sen from the Oxford Smith School of Enterprise and the Environment emphasized the cost-effectiveness of clean technologies compared to fossil fuels, urging governments to adopt optimal policy mixes to achieve rapid emissions reductions.

The study, titled ‘Climate policies that achieved major emission reductions: Global evidence from two decades,’ has been published in Science. The findings provide valuable insights for policymakers and stakeholders working towards meeting global climate targets.