| Abstract: | The Low-Carbon Society (LCS) research project (Strachan et al., 2008a) is examined for its insights about the scale, nature and timing of the deployment of low-carbon technologies. In addition to ‘carbon price only’ policies, other incentives and demand-side efforts are needed in order to embed climate policies into broader development approaches. The question of what constitutes transition pathways is considered. Fundamental institutional, individual and social changes are needed to accompany economic and technological change as energy is embedded in overall development patterns. The cost assessment of decarbonization policies may be too optimistic if it is only considered as the final outcome of a LCS, and if the inevitable hindrances and setbacks along the transition pathway are disregarded. The significance of transition costs is highlighted, together with their causes: social and short- and medium-term economic costs and adjustments in macroeconomic dynamics. Although the overall welfare costs of LCS are likely to be smaller than the benefits (including the co-benefits), a clear and realistic understanding of potential transition difficulties is necessary in order to define the robust policy mix needed to underpin it. |
