Delaying climate action: the cost of reaching Net Zero under policy uncertainty
Abstract
Many countries have pledged to achieve net zero (NZ) emissions by mid-century to meet global climate goals. To date, long-term promises to reduce emissions have not been followed by implemented actions, and the world is not clearly moving toward an orderly and smooth transition. Assessing the costs and risks of a delayed transition using the IMACLIM-R Integrated Assessment Model will be the first part of this project. In addition, setting long-term emission reduction targets raises credibility concerns, as stakeholders may not trust forward-looking policy signals when they observe limited near-term mitigation efforts. In the second part of this project, I will introduce the concept of heterogeneous beliefs about future climate policy to explore the intricate relationship between delayed climate action and the credibility of climate policies