The newest Economics of Energy Innovation and System Transition Project report summarises work performed during the past three years on innovation in the energy sector and the impact of environmental policies on trade and emissions, with results from the programme in Brazil. It illustrates why (and how) the way in which policy is assessed matters for policymakers: specifically, tools that emphasise interactions between policies and an economy in constant evolution can pinpoint risks and opportunities.
The report also provides insights on how unique dimensions of the Brazilian landscape and financial situation give scope for effective action towards a low-carbon re-industrialisation. Written for technical and policy teams in Brazil, with particular relevance to the ministerial, development banks and energy regulators, it illustrates in particular that the dynamic nature of low-carbon re-industrialisation offers opportunity, with ROA a more useful tool than traditional (but impractical) cost-benefit analysis (CBA) to assess the green transition via empirical case studies. The authors support this with four additional modelling case studies implementing the learning from this work in policy-relevant modelling. An appendix summarises the engagement strategy built upon communities of practice in Brazil, as a potential example to future science-policy interface collaboration.
Download the full report by Pasqualino, R., Cabello, A., et al. here.