
doi: 10.2139/ssrn.6460683
Despite robust scientific consensus, a persistent gap remains between climate commitments and realized mitigation outcomes. Rooted in backward-looking logic, existing policy frameworks grounded in the Polluter Pays Principle (PPP) focus on pricing negative externalities and struggle to overcome collective action problems, behavioral biases, and information asymmetries. This paper introduces the Beneficiary Earns Principle (BEP), a forward-looking governance framework that rewards verified climate-positive actions and transforms them into measurable economic assets via digital monitoring, reporting, and verification (dMRV). By shifting from cost imposition to value generation, the BEP aligns private motivations with social objectives in a behaviorally salient and institutionally scalable manner. Extending beyond micro-level incentives, the BEP embeds a Recursive Innovation Loop in which earned rewards are reinvested into climate technologies, endogenizing innovation and lowering long-run abatement costs. Drawing on behavioral economics, polycentric governance, and Sen's Capability Approach, the BEP offers a scalable pathway from climate ambition to climate action.
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