Assessment of Low economy Policy Instruments (R-6154)

Finance is one of the main critical issues for the development of a low-carbon society especially during times of economic recession. For Belgium the required investments are estimated from 35 milliard Euro for a GHG reduction of 80% up to 46 milliard Euro for a GHG reduction of 95% (Cornet, et al., 2013). Closing this green investment gap will require policy intervention. However, financing options from governments are increasingly limited and thus the green investment should try to mobilize private finance through the smart use of limited public finance (WEF, 2013). The overall objective of the ALPI project is twofold: - to contribute to science by quantitatively simulating and comparing the impact of different user-defined policy instruments on investment decision and emission reductions and - at the same time give Belgian policy makers scientifically sound evidence of the impact of these instruments and how they are best designed, implemented and streamlined with other policies to maximize their economic and environmental impact. To achieve the objectives within a two-year program, the ALPI project will work through relevant case-studies. In each case-study at least two policy instruments will be evaluated. Case-studies are selected as such that firstly different economic sectors are covered, that secondly type of instruments can vary and that thirdly investments in energy-efficiency and renewable energy are tackled. Cases and instruments are selected to maximize what can be learned in the period of time available for the study (Tellis, 1997).

Keywords:energy-efficiency, Low-carbon society, Policy instruments, Renewable energy

Disciplines:Applied economics, Economic history, Macroeconomics and monetary economics, Microeconomics, Tourism

Project type:Collaboration project