Increasing realism in quantitative system modelling with respect to the representation of actors, decision-making, and institutions is critical to better understand the transition towards a low-carbon sustainable society. Yet, studies using quantitative system models, which have become a key analytical tool to support sustainability and decarbonization policies, focus on outcomes, therefore overlooking the dynamics of the drivers of change. We explore opportunities that arise from a deeper engagement of quantitative systems modelling with social science. We argue that several opportunities for enriching the realism in model-based scenario analysis can arise through model refinements oriented towards a more detailed approach in terms of actor heterogeneity, as well as through integration across different analytical and disciplinary approaches. Several opportunities that do not require major changes in model structure are ready to be seized. Promising ones include combining different types of models and enriching model-based scenarios with evidence from applied economics and transition studies.
Increasing realism in quantitative system modelling with respect to the representation of actors, decision-making, and institutions is critical to better understand the transition towards a low-carbon sustainable society. Yet, studies using quantitative system models, which have become a key analytical tool to support sustainability and decarbonization policies, focus on outcomes, therefore overlooking the dynamics of the drivers of change. We explore opportunities that arise from a deeper engagement of quantitative systems modelling with social science. We argue that several opportunities for enriching the realism in model-based scenario analysis can arise through model refinements oriented towards a more detailed approach in terms of actor heterogeneity, as well as through integration across different analytical and disciplinary approaches. Several opportunities that do not require major changes in model structure are ready to be seized. Promising ones include combining different types of models and enriching model-based scenarios with evidence from applied economics and transition studies.
Increasing the realism with respect to the representation of actors, decision-making, and institutions is critical to better understand the transition towards a low-carbon sustainable society since actors, decision-making, and institutions are the defining elements of transition pathways. In this paper, we explore how this can be done by conducting a model-based scenario analysis. The increasing focus on implementation and transition dynamics towards long-term objectives requires a better comprehension of what drives change and how those changes can be accelerated. We explore opportunities that arise from a deeper engagement of quantitative systems modeling with socio-technical transitions studies, initiative-based learning, and applied economics. We argue that a number of opportunities for enriching the realism in model-based scenario analysis can arise through model refinements oriented towards a more detailed approach in terms of actor heterogeneity, as well as through integration across different analytical and disciplinary approaches.
In recent years, an approach based on voluntary pledges by individual regions has attracted interest of policy-makers and consequently also climate policy research. In this paper, we analyze scenarios in which the EU and China act as early-movers in international climate policy. Such a situation risks leakage between regions with ambitious emission reduction targets and those with less ambitious targets via fossil-fuel markets, displacement of heavy industry and land-use consequences. We examine some of these factors using the IMAGE model. While IMAGE does not include all mechanisms, we find the leakage rate to be relatively small, about 5% of the emission reductions in the EU and China. The far majority occurs via the energy market channel and the remainder through land-use change. Reduced oil prices due to less depletion forms the key reason for this leakage impact.
The European Union (EU) is committed to reducing its greenhouse gas (GHG) emission levels by 80%–95% in 2050 compared to 1990 levels. Various approaches have been developed to secure and evaluate the progress made towards this objective. To gain insights into how EU Member States are aligning to this collective long-term objective, we systematically compare the planning and ex-ante evaluation processes for five EU countries (respectively Denmark, France, Germany, the Netherlands and the United Kingdom). The comparative analysis consists of a qualitative comparison of (1) the governance of long-term policy planning and evaluation processes, (2) the national arrangement for quantitative (model-based) ex-ante policy evaluation and (3) the national arrangement for qualitative ex-ante policy evaluation (stakeholder participation). In a second step we conduct a quantitative comparison of national model-based ex-ante evaluation studies to assess the relative differences between the considered routes and the differences across the various countries. Although the five Member States plan policies along the same EU objective, we find a high diversity in how long-term commitments are established, governed and evaluated on the national level. Model-based scenario analyses are commonly used to explore and evaluate the possible national routes towards the EU 2050 objective. However, as these processes mostly concentrate on domestic action, they pay little attention to how domestic policies are affected by, or affecting, other international activities throughout Europe. Hence, current findings suggest that cross-border collaboration and stakeholder participation could further strengthen the analytical understanding of required transformative change in Europe and subsequently lead to a more durable long-term solution over time.
The objective of this paper is to outline and discuss the key elements of an EU industrial development policy consistent with the Paris Agreement. We also assess the current EU Industrial Strategy proposal against these elements. The "well below 2 °C" target sets a clear limit for future global greenhouse gas emissions and thus strict boundaries for the development of future material demand, industrial processes and the sourcing of feedstock; industry must evolve to zero emissions or pay for expensive negative emissions elsewhere. An industrial policy for transformation to net-zero emissions must include attention to directed technological and economic structural change, the demand for emissions intensive products and services, energy and material efficiency, circular economy, electrification and other net-zero fuel switching, and carbon capture and use or storage (CCUS). It may also entail geographical relocation of key basic materials industries to regions endowed with renewable energy. In this paper we review recent trends in green industrial policy. We find that it has generally focused on promoting new green technologies (e.g., PVs, batteries, fuel cells and biorefineries) rather than on decarbonizing the emissions intensive basic materials industries, or strategies for handling the phase-out or repurposing of sunset industries (e.g., replacing fossil fuel feedstocks for chemicals). Based on knowledge about industry and potential mitigation options, and insights from economics, governance and innovation studies, we propose a framework for the purpose of developing and evaluating industrial policy for net-zero emissions. This framework recognizes the need for: directionality; innovation; creating lead markets for green materials and reshaping existing markets; building capacity for governance and change; coherence with the international climate policy regime; and finally the need for a just transition. We find the announced EU Industrial Strategy to be strong on most elements, but weak on transition governance approaches, the need for capacity building, and creating lead markets.
