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The impossible triangle of carbon mitigation policy

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  • Jia, Zhijie
  • Liu, Yu
  • Lin, Boqiang

Abstract

Policies aimed at mitigating climate change have received significant attention, but the trade-offs on energy cleanliness, economic growth, and energy security triggered by policies are not well understood. This study uncovers the trade-offs among these objectives, highlighting the challenges presented by the “impossible triangle" of mitigation policy. We develop fitness and surpassing indices to assess the performance of different policy priorities and find that these objectives cannot be simultaneously achieved. However, a mix of policies can help to alleviate the tensions caused by the impossible triangle. Specifically, we find that a “renewable+" policy mix is effective in balancing these objectives, whereas a mix of similar policies is less successful. Our study provides optimal policy mixes for different economic phases and offers specific policy implications for achieving carbon peak and carbon neutrality.

Suggested Citation

  • Jia, Zhijie & Liu, Yu & Lin, Boqiang, 2024. "The impossible triangle of carbon mitigation policy," Energy Policy, Elsevier, vol. 189(C).
    • Handle: RePEc:eee:enepol:v:189:y:2024:i:c:s0301421524001277
    DOI: 10.1016/j.enpol.2024.114107
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