Radical Climate Policies

In the presence of strategic complementarities stemming from peer effects in demand orfrom technological spill-overs, propagation and amplification mechanisms increase the effectiveness ofclimate policies. This suggests that climate goals can be met with smaller policy interventions. However, if there aremultiple equilibria, radical and more ambitious climate policies are needed to shift the economy from ahigh-emissions to a low-emissions path. Once the radical shift has taken place the transformative policies can bewithdrawn. More generally, such policies can set in motion social, technological, and political tipping points. Therationale for such policies is strengthened due to key households, corporations and institutions being at thecentre of networks, and thus radical climate policies should identify those agents and leverage them. The proposals offera complementary perspective to scholars that have emphasised insights from the literature on early warning signals toadvocate sensitive intervention points to get more effective and more transformative climate policies.