A commonly held perspective, endorsed by scientists, policymakers, and the public at large, asserts that tackling the climate crisis and promoting sustainable development must be interconnected. To facilitate a shift toward a green global economy while still enabling ongoing economic growth, substantial changes in the structure of global production and consumption are necessary. Nevertheless, the specifics of resource reallocation—how and where it should occur—remain contingent upon the assumptions made regarding the pace of the green transition.
The LOCALISED Project recently published a new paper that explores three transition scenarios, each characterised by the pace of the shift from a fossil-fuel-based economy to a renewable energy-dominated one. These scenarios include a constant (linear) transition, a rapid transition, and a delayed transition. The paper analyses the demands of each pathway in terms of reallocating capital and labour, as well as investing in capital stocks and research and development (R&D). Through this analysis, one can identify key factors influencing various transition paths and inform overall policy priorities.
The paper builds on a widely used integrated assessment model of climate change and economy and introduces several important changes and additions that enable the representation of the green transition in a simplified but relevant manner.
Read the full publication here.