Open research questions in Climate Change Policy and Economics
324 gap statements mined from Climate Change Policy and Economics papers in our 7.9M-paper local library, which holds 4,290 papers on the topic — drawn mostly from each paper's own stated research gap, future-work, challenge and limitation notes, and its abstract. The ones listed below are a selection still marked open; each names the study that raised it, with a DOI link where the paper has one.
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What the literature leaves open
Future research could investigate whether right-wing populist parties have actively reinforced perceptions of unequal treatment and opposition to environmental policies in rural areas. Lastly, future work could examine the broader question of whether perceptions of unequal treatment by the state affect support for governments’ environmental policies beyond carbon taxation.
The gap is in understanding how the periodic dynamics of environmental degradation are influenced by policy parameters. There is a need to construct a careful alignment between the border of the no-tax area and the level of taxation.
These approaches do not consider fuzzy representations of equity principles, such as responsibility, capacity, population, and innovation. The gap is the lack of a methodological framework that can handle the complexity and uncertainty of climate finance allocation.
Advancing the NCQG: A Fuzzy Multi-Criteria Model for Evaluating National Contributions to Climate Finance · 2026 · DOIFuture research could consider the impact of government policies on heterogeneous firms, such as those with differing levels of technological innovation capability.
Research on government carbon allowance allocation mechanism from the perspective of the differential game · 2026 · DOIOther ETS-covered sectors—iron and steel, cement, refining, chemicals—differ in free allocation, exposure to carbon leakage and the availability of low-carbon substitutes, and the estimates should not be extrapolated to them; whether the complementarity between price and commitment holds where no equivalent of a phase-out commitment exists is an open question that bears directly on the design of ETS2.
Carbon Pricing and Coal Displacement in the European Union: Complementarity Between Price Signals and Phase-Out Commitments, 2005–2024 · 2026 · DOIA well-documented NDC does not inevitably translate into stronger mitigation targets, just as quantitively strong NDC targets may be accompanied by limited evidence of how such targets were determined.
Assessing processes and evidence for highest possible ambition in Nationally Determined Contributions under the Paris Agreement · 2026 · DOISecond, there is insufficient integration between the public and private sectors, with most ESG efforts concentrated in large corporations and less engagement from local authorities.
The Role of ESG in Driving Sustainable Innovation in Water Sector: From Gaps to Governance · 2025 · DOIFunding Although CCS and BECCS are considered important technologies to bring countries in alignment with net-zero and net-negative emissions targets, they remain controversial in part for their ability to extend the extraction and combustion of fossil fuels.
Risking delay: the storylines of (bioenergy with) carbon capture and storage in Swedish parliamentary discourse · 2025 · DOIWhile the importance of embedding Sustainable Development Goal 5 (SDG5) gender equality considerations into climate change action is increasingly recognized, there is a gap in understanding how the VCM may impact SDG5 because previous research has explored the integration of gender equality and the VCM in specific cases or focused on individual standards.
The empirical evaluations about how China’s regional ETSs affect industrial process-related CO2 emissions and how the effects vary by sectoral coverage are rarely seen and warrant further study.
This research agenda has outlined how affective polarization may represent a critical yet underexplored mechanism reinforcing carbon lock-in across advanced democracies.
Revisiting the Carbon Lock-In: Outlining an Agenda on How Affective Polarization Constrains Climate Policy Making · 2026 · DOIThe defensible conclusion is methodological and substantive: approvals are sparse, occur upstream from implementation, and are weak proxies for the date and scale of realized resilience investment.
From Climate-Finance Approval to Measurable Resilience in Latin America and the Caribbean: Dynamic Panel Evidence and Small-Sample Robustness · 2026 · DOIThus, the applicability of the “one-category-one-strategy” approach to marginal industries remains to be verified.
Paths for low-carbon transformation in heavily polluting manufacturing industries under heterogeneous environmental regulations · 2026 · DOIThe current magnitude of land-indicator incentives is insufficient to alter local governments' passive responses, while variations in supervision level and risk coefficients suggest that excessive centralization by the central government may be counterproductive.
Evolutionary game analysis of central-local territorial spatial governance under China's dual carbon goals and its policy implications · 2026 · DOIFuture research should focus on regional market heterogeneity and interconnections, accounting for local, natural, socioeconomic contexts.
China’s Carbon Emissions Trading Market: Current Situation, Impact Assessment, Challenges, and Suggestions · 2025 · DOILimited research to date explores the issue of climate apartheid and climate justice and its relationship with accountability.
Even if it did, it remains unclear why Heath thinks economists have the relevant expertise.
Limitations of this study This study is subject to three methodological limitations.
Estimation of agricultural carbon abatement costs using a marginal-productivity-based production-input model: evidence from Fujian Province, China · 2026 · DOIThird, the evaluation is limited to the daily closing price data and two parameter re-estimation frequencies (weekly and monthly), leaving open the question of whether higher-frequency data or alternative updating schemes would yield different results.
The need for subnational governments to take a more significant role in climate action. The lack of a transparent approach for integrating subnational variation into decarbonization modeling.
Modeling Heterogeneous Subnational Climate Action through a Sectoral Tiering Framework: Implications for U.S. Decarbonization Pathways · 2026 · DOIThe trade-off between environmental services and agricultural production is a major challenge. The design of PES programs is a complex task. The paper's findings highlight the need for policymakers to consider the potential contractionary effects of PES.
The macroeconomic implications of PES remain insufficiently understood. Prior work has focused on local outcomes or relied on partial equilibrium frameworks. There is a need for a general equilibrium model that captures the interactions between sectors, prices, and income.
The complexity of climate modeling and the need for a high-fidelity surrogate model. The need to enable regional agents to learn climate policies under multi-gas dynamics.
Climate Surrogates for Scalable Multi-Agent Reinforcement Learning: A Case Study with CICERO-SCM · 2026 · DOIThird, the food security measure does not account for substitution toward third-country imports.
Carbon Border Adjustment, Market Responses, and Food-Security Trade-Offs in EU–Türkiye Processed Agri-Food Trade: A Calibrated Stackelberg Analysis · 2026 · DOIFurther research on air quality and health impacts of different 6 WHO declares novel coronavirus outbreak a pandemic.
Estimation of Property Value Changes from Nearby Carbon Capture, Utilization, and Storage Projects in the United States · 2026 · DOI
Most-cited papers in Climate Change Policy and Economics
- Acceleration of global warming due to carbon-cycle feedbacks in a coupled climate model · Nature · 2000 · 3,219 citations
- Environmental Repercussions and the Economic Structure: An Input-Output Approach · The Review of Economics and Statistics · 1970 · 1,765 citations
- The geographical distribution of fossil fuels unused when limiting global warming to 2 °C · Nature · 2015 · 1,592 citations
- Challenges toward carbon neutrality in China: Strategies and countermeasures · Resources Conservation and Recycling · 2021 · 1,414 citations
- Strategies for mitigation of climate change: a review · Environmental Chemistry Letters · 2020 · 1,355 citations
- On Modeling and Interpreting the Economics of Catastrophic Climate Change · The Review of Economics and Statistics · 2009 · 1,318 citations
- Tightening Environmental Standards: The Benefit-Cost or the No-Cost Paradigm? · The Journal of Economic Perspectives · 1995 · 1,311 citations
- A Review of the Stern Review on the Economics of Climate Change · Journal of Economic Literature · 2007 · 1,170 citations
- Climate Clubs: Overcoming Free-riding in International Climate Policy · American Economic Review · 2015 · 996 citations
- Emissions – the ‘business as usual’ story is misleading · Nature · 2020 · 989 citations
Most recent work
- The Macroeconomic Impact of Climate Change: Global Versus Local Temperature · The Quarterly Journal of Economics · 2026
- Decoupling economic growth and CO2 emissions: a geopolitical comparison of the EU and GCC energy transitions · Quality & Quantity · 2026
- Climate promotion tournaments and collaborative governance: central-local dynamics in China’s carbon neutrality policy implementation · Journal of Environmental Policy & Planning · 2026
- Coordination and Commitment in International Climate Action: Evidence From Palm Oil · Econometrica · 2026
- Global climate justice and the future of air quality co-benefits in low-income and middle-income countries: an energy, climate, and health modelling study · The Lancet Global Health · 2026
- Green growth at risk: the role of geopolitical risk and economic policy uncertainty on green production practices · Humanities and Social Sciences Communications · 2026
- Climate policy backlash: taming an unruly concept? · Journal of Environmental Policy & Planning · 2026
- Energy transition across the climate policy uncertainty divide: The critical role of green technology innovation and digital transformation · Economic Analysis and Policy · 2026
- Pigou’s Advice and Sisyphus’ Warning: Carbon Pricing with Non-Permanent Carbon Dioxide Removal · Environmental and Resource Economics · 2026
- International financial support to achieve the net-zero emissions goal could help resolve equity trade-off between developing and developed countries · Communications Earth & Environment · 2026
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