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Climate change policies and technologies: diffusion and interaction with institutions and governance

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  • Labhard, Vincent
  • Lehtimäki, Jonne

Abstract

Climate change is a global-scale structural change, affecting economies across the world, alongside global fragmentation, digitalisation and demographics. This paper analyses the diffusion of climate policies and technologies and the role of institutions and governance in that process. It discusses theory, models and data available to date, and the empirical evidence for the 20 European Union and all 40 countries covered by the OECD’s Environmental Policy Stringency index. The results indicate that institutions and governance have significant effects towards a greater speed and spread of diffusion of climate policies and technologies, and that separating the speed and spread effects is essential for assessing the green transition. JEL Classification: E02, O11, Q20, Q55, Q58

Suggested Citation

  • Labhard, Vincent & Lehtimäki, Jonne, 2025. "Climate change policies and technologies: diffusion and interaction with institutions and governance," Working Paper Series 3027, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:20253027
    Note: 360650
    as

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    References listed on IDEAS

    as
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    More about this item

    Keywords

    adaptation; mitigation; renewability; sustainability; transition;
    All these keywords.

    JEL classification:

    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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