Aligning technology, politics and economics to achieve allocative resource efficiency in the UK

Lead Research Organisation: University of Cambridge
Department Name: Engineering

Abstract

Current climate mitigation policy in the United Kingdom focuses on low-emission energy generation and carbon capture and storage. Space and technological constraints limit the potential for further reduction in greenhouse gas emissions through these methods. A third approach is to achieve allocative resource efficiency by reducing demand in energy-intensive industries such as construction and beef production. Rather than focusing on the limited remaining efficiencies in converting energy into work, capitalising on available efficiencies in converting work into products will improve GHG reduction in the UK.
To gain political traction, there must be an economic argument for demand reduction. There are many technological options for reducing demand for energy and materials, but this approach is difficult to reconcile with a traditional economic model focused on increasing gross domestic product: a reframing is necessary. The discussion of climate change can no longer be about allowing GDP to grow without being tempered by adverse weather. Future policy must be grounded in reducing the civic and economic risks of rising temperatures, and addressing the security challenges in a future with increasingly scarce resources.
The proposed project aims to create a bridge between the technologies of demand reduction and the forms of economic model used in policy processes, with a view to reconciling technology, politics and economics in a manner that will mitigate the risks and security concerns associated with global warming.

Publications

10 25 50

Studentship Projects

Project Reference Relationship Related To Start End Student Name
EP/N509620/1 01/10/2016 30/09/2022
2124605 Studentship EP/N509620/1 01/10/2018 30/09/2021 Sarah Nelson
 
Description Current proposals for a pathway to net zero in the UK are skewed towards technological solutions, leaving opportunities for behavioural mitigation underutilised (paper under review). Given that social transitions can be significantly quicker than technological transitions (paper in press), this technological bias is likely slowly decarbonisation in the UK. Moreover, using behavioural economic theory and modelling we should that the uptake of social transitions and benefits of climate policy would be further accelerated by reframing climate change from a 'marginal' problem, in which damages accumulate slowly over time, to a 'threshold' problem, in which ongoing inaction increases the risk of catastrophic outcomes (paper under review). Combining these results, we propose several policy recommendations. First, climate policy should more comprehensively address behavioural avenues to mitigation, including changing consumption patterns for food and consumer goods. Second, climate messaging should focus on the threshold effects of ongoing inaction. Finally, we propose that an additional market mechanism could be used to encourage transformation of energy use, namely a market for forward contracts for selling non-emitting electricity (ongoing work). This market would have the additional benefit of stimulating private sector investment in renewable energy supply, subject to the constraints on technological deployment.
Exploitation Route This work is relevant for climate policymakers, to highlight untapped opportunities for behavioural decarbonisation. Researchers will be able to use our work showing the bias towards technological mitigation in UK climate policy to contextualise policy recommendations and evaluate the plausibility of national climate policies. Moreover, we hope that our proposal for an additional market for non-emitting electricity supply will be adopted by the public and private sector in collaboration, in a way that will stimulate financing of renewable generation and create a way for corporations to signal their net zero compatability to investors including large pension funds.
Sectors Energy,Environment,Government, Democracy and Justice