Translating Model Results to Economic Policies

by RECIPE Project

- This paper aims to draw insights for policy design from RECIPE project results. The models ignore important factors that influence investment, innovation, production and consumption decisions. After all, managers and consumers make these decisions in a reality that is characterised by: incomplete information, uncertainty, limited trust in continuity or announced policy schemes, concerns about technology spillover, constrained access to capital, administrative barriers, and institutional mismatches. These factors need to be considered when designing and implementing policy instruments to deal with the real world.

Neuhoff, K., S, Dröge, O. Edenhofer, C. Flachsland, H. Held, M. Ragwitz, J. Strohschein, A. Türk and A. Michaelowa (2009). "Translating model results to economic policies." RECIPE Working Paper, Nov 2009.