IDEAS home Printed from https://ideas.repec.org/h/spr/sprchp/978-3-030-79713-3_4.html
   My bibliography  Save this book chapter

Modelling Sustainability Transitions Under Covid-19

In: Energy Transition, Climate Change, and COVID-19

Author

Listed:
  • Simona Montagnana

    (University of Bath)

  • Paolo Zeppini

    (University of Bath
    Nice University)

Abstract

We propose a model of dynamic discrete choice between sustainable and unsustainable technologies, and we study the combined impact of Covid-19 and environmental policies such as subsidies and taxes with rebates. The model shows that environmental policies tailored on Covid-19 impact can induce sustainability transitions. However, different scenarios are possible. Covid-19 can have a destabilising effect on repeated choices, as a result of minority game mechanisms induced either by carbon taxes with rebates or by the behavioural effect of diminished attention for the environment. While taxes can be designed to avoid this, the diminished attention for the environment can undermine any gain in terms of reduced pollution due to Covid-19. However, scenarios with multiple equilibria are also present, where the challenge is represented by a behavioural tipping point to un-clock societies from an undesirable equilibrium. If environmental policies are correctly designed, the economic impact of Covid-19 can trigger a transition to sustainable societies where green adoptions are self-reinforcing.

Suggested Citation

  • Simona Montagnana & Paolo Zeppini, 2021. "Modelling Sustainability Transitions Under Covid-19," Springer Books, in: Fateh Belaïd & Anna Cretì (ed.), Energy Transition, Climate Change, and COVID-19, pages 73-93, Springer.
    • Handle: RePEc:spr:sprchp:978-3-030-79713-3_4
    DOI: 10.1007/978-3-030-79713-3_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    Keywords

    Discrete choice; Environmental policy; Limited attention;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:sprchp:978-3-030-79713-3_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.