University of Chicago Research Advocates for Combined Demand and Supply-Side Climate Policies for Global Emissions Reduction
Research from the University of Chicago's Energy Policy Institute (EPIC), led by Scholar Ryan Kellogg, emphasizes the necessity of a dual approach to climate policy, integrating both demand-side and supply-side strategies for effective and fair global emissions reduction. Published in a Brookings Papers on Economic Activity, the study highlights that carbon is a global pollutant, making a global perspective on emissions reductions paramount. Demand-side policies, such as emissions pricing and clean energy subsidies, aim to decrease the demand for fossil fuels. Conversely, supply-side policies, including extraction pricing or prohibitions on pipeline construction, focus on reducing the availability of fossil fuels. The research suggests that combining these approaches can mitigate 'leakage,' where domestic policies inadvertently increase emissions elsewhere by affecting global fossil fuel prices. For instance, a U.S. emissions tax might lower global fossil fuel prices, leading to increased consumption in ot...
