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Additional or accidental? Simulating interactions between a low-carbon fuel standard and other climate policy instruments in Canada

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  • Hoyle, Aaron
  • Peters, Jotham
  • Jaccard, Mark
  • Rhodes, Ekaterina

Abstract

Many jurisdictions are subject to climate action plans composed of multiple policy instruments. As climate policy landscapes become increasingly crowded, understanding the nature and likelihood of interactions between proposed policies and other instruments that make up a policy mix is a key element of policy design. We introduce a technology-rich computable general equilibrium model of the Canadian energy-economy, gTech, to explore the effectiveness of one such policy called the low-carbon fuel standard (LCFS) at reducing greenhouse gas emissions when implemented alongside other climate policy instruments. We find that the ability of a LCFS to reduce emissions depends on the ‘background’ policy mix it is layered on top of, in addition to its credit market design.

Suggested Citation

  • Hoyle, Aaron & Peters, Jotham & Jaccard, Mark & Rhodes, Ekaterina, 2024. "Additional or accidental? Simulating interactions between a low-carbon fuel standard and other climate policy instruments in Canada," Energy Policy, Elsevier, vol. 185(C).
    • Handle: RePEc:eee:enepol:v:185:y:2024:i:c:s0301421523005049
    DOI: 10.1016/j.enpol.2023.113919
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    References listed on IDEAS

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