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Oxford Review of Economic Policy
Article . 2025 . Peer-reviewed
License: CC BY
Data sources: Crossref
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Green transitions: complementarities, multiple equilibria, and tipping points

complementarities, multiple equilibria, and tipping points
Authors: van der Ploeg, F; Venables, AJ;

Green transitions: complementarities, multiple equilibria, and tipping points

Abstract

Abstract With strategic complementarities stemming from peer effects in demand or technological spillovers, propagation and amplification mechanisms increase the effectiveness of climate policies. This suggests that climate goals can be met with smaller policy interventions. However, if there are multiple equilibria, radical policies are needed to shift the economy from a high-emissions to a low-emissions path. Once the radical shift has taken place these policies can be withdrawn. More generally, such policies can set in motion social, technological, and political tipping points. The paper develops an analytical framework within which policies to achieve these tipping points are studied, looking at the extended role for tax and subsidy policies, at dynamics of change, and at policy under uncertainty. Our proposals offer a complementary perspective to scholars that have emphasized insights from the literature on early warning signals to advocate sensitive intervention points to obtain more effective and more transformative climate policies.

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United Kingdom, Netherlands
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    popularity
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    Top 10%
    influence
    This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
4
Top 10%
Average
Top 10%
Green
hybrid
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