Designing an effective climate-policy mix: accounting for instrument synergy

We assess evidence from theoretical-modelling, empirical and experimental studieson how interactions between instruments of climate policy affect overall emissionsreduction. Such interactions take the form of negative, zero or positive synergisticeffects. The considered instruments comprise performance and technical standards,carbon pricing, adoption subsidies, innovation support, and information provision.Based on the findings, we formulate climate-policy packages that avoid negativeand employ positive synergies, and compare their strengths and weaknesses onother criteria. We note that the international context of climate policy has beenneglected in assessments of policy mixes, and argue that transparency andharmonization of national policies may be key to a politically feasible path to meetglobal emissio