The transition to a low-carbon economy is essential to limit the effects of climate change. However, this shift requires massive investments—up to 6% of global GDP per year. In her research, Sacha de Nijs examines how these investments can be used more effectively, and how their impacts are distributed across regions.
She shows that companies do not always invest efficiently in green technologies, due to market failures or lack of information. Governments play a crucial role here: not only by pricing carbon emissions, but also by removing barriers to investment and accelerating the diffusion of sustainable technologies. Regional differences must be taken into account, as not all areas have equal access to renewable energy sources or the same economic structure. Policy responses must therefore be tailored to local contexts.
De Nijs also demonstrates that combining different research methods helps address complex questions and leads to more broadly applicable, policy-relevant insights. Her work provides valuable guidance for policymakers, economists, and investors working towards a fair and effective climate transition.
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