Climate Policy Complexity: Second-best Regulation of Carbon Dioxide Emissions in Industrial Sectors
This project addresses the issue of policy instrument choice for achieving deep reductions of carbon emissions in industrial plants.
Introducing a high and stable price on carbon is often difficult to implement due to competitiveness concerns and other political constraints. There is however historical evidence of policies based on performance standards that have contributed to deep emissions reductions without jeopardizing competitiveness.
Patrik Söderholm, Department of Business Administration, Technology and Social Sciences, Luleå University of Technology (project leader)
Kristina Söderholm, Department of Business Administration, Technology and Social Sciences, Luleå University of Technology
The objective of the project is to investigate the circumstances under which performance standards can: (a) provide scope for deep carbon emission reductions in industry; and (b) promote technological change that brings down the future compliance costs. The project departs from an analytical framework of how a regulation-based transition towards lower emissions in the industrial sector can be studied. This is employed to analyze important experiences and lessons from industrial pollution regulation in Sweden, Finland and the USA.