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Climate-change policy in the United Kingdom

Posted on: 9 September 2011
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This OECD Working Paper analyses the UK climate-change policy framework. It first examines the United Kingdom’s performance according to various outcomes relevant to climate change, such as greenhouse gas emissions (GHG) reductions and the market penetration of renewable energy. It then discusses UK policies and how well they are designed to reduce greenhouse gas emissions in a cost-effective way. Particular attention is paid to carbon pricing and of the need to correct the market failures that afflict innovation the promotion of renewable energy. Examining policies piecemeal can lead to neglect of significant interactions among them when, for example, quantity-based instruments co-exist with price-based instruments or policies are applied at different stages in the supply chain. Hence the paper also addresses the issue of overlapping policy instruments. The variety of policies across different sectors of the economy is also noted. The paper then moves from climate-change mitigation to discuss adaptation policies. Finally, the paper concludes with some suggestions for how policies could be improved.

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