Transitioning to Long-Run Effective and Efficient Climate Policies

Stavins, Robert N.; Schatzki, Todd; Scott, Rebecca

doi:10.2139/ssrn.3387619

Cited by 2 publications

(1 citation statement)

References 5 publications

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“…Otherwise, failing as conduits of policy benefits, they would have succumbed to rent seeking, and it would be sensible to adjust or remove the subsidy to mitigate the risk of economic harm. Indeed, suppliers of goods or services required for compliance with a policy obviously have an incentive to perpetuate it [42], and there is evidence that the inadvertent continuation of credit subsidies initially established to correct a genuine market failure supports unproductive entrepreneurs and blocks the entry of productive ones [43].…”

Section: Continuous Policy Optimisationmentioning

confidence: 99%

Bluer Than Blue: Exit from Policy Support for Clean Marine Energy

Roeben,

Macatangay

2023

Sustainability

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The amendment or removal of superfluous government support policies is typically difficult, yet in the ever more important debate on low-carbon (i.e., clean) marine energy policy under the international law of climate action, the law of the sea, and international investment protection, there are additional dimensions of legal or economic peril. Coastal states enact policies subsidising clean energy investments, such as offshore wind energy generation, in their exclusive economic zones or continental shelves. Investors are attracted to the prospect that policies granting subsidies for ostensibly new industries are sufficiently durable. Are such subsidy policies salient or stale? In principle, the purpose of regulatory policy is the promotion of social welfare, and hence, there is an optimal incidence, magnitude, and duration of the subsidy, in essence, an ideal strategy for starting, altering, or exiting such policy. We aim to introduce the concept of optimisation to the design and implementation of regulatory policy in this context. Our contribution is to offer three maxims of optimal clean marine energy law and policy: the efficiency and equity of alternative regulatory arrangements; the continuous optimisation of such arrangements; and the recognition of linguistic entanglements in the law. We test these maxims against the case of clean marine energy policy on offshore wind energy generation. One legal implication for international investment protection is that coastal states should establish a policy exit clause in their investment contracts. Our analysis of policy optimisation is generalisable across policies supporting the transition to sustainable energy forms.

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Section: Continuous Policy Optimisationmentioning

confidence: 99%