Project description
How policies shape eco-friendly choices
Environmental policymakers always need to weigh sustainability benefits against costs. For consumers, choices and behaviours are based on the benefits provided to them by policies. In this context, the EU-funded DEEP project will consider the causes of varying adaptation to new environmental policies like renewable energy subsidies and the electrification of transportation. As such, DEEP will shed light on how environmental policies shape choices, with consequences for policy effectiveness and the evolution of disparities among households and firms. The key to achieving this is the construction of novel and exceptionally ambitious models of decisions that affect outcomes over time. The results will broaden our understanding of how inequality develops under policy choices in interaction with pre-existing disparities.
Objective
"A key goal of environmental policy is to ensure sustainable choices and investment. For the individual, revising choices and behavior might be necessary to avoid costs or obtain benefits introduced by policies. Though a growing literature has investigated how different environmental policies produce winners and losers through differences in costs and benefits between individuals, less is known about the causes of varying adaption to new policies. In the context of environmental policy, there are no studies of how the ""hand of the past"" determines the ability to adapt through choices that are not easily reversed, such as location, and exposure to wealth effects from revaluation through existing endowments at the individual or firm level. The goal of DEEP is to provide new knowledge of how existing differences interact with environmental policies in shaping choices, with consequences for policy effectiveness and the evolution of disparities among households and firms. The key to achieve this is the construction of novel and exceptionally ambitious models of decisions that affect outcomes over time, combined with data of unparalleled detail on choices, outcomes, income and assets of individuals, households and firms in settings featuring rich and highly relevant policy interventions. The results will contribute both to our understanding of how inequality develops under policy choices in interaction with preexisting disparities, and our understanding of the trade-offs between equity and effectiveness when designing policies. The project will center on two strategically important areas: 1) electrification of transportation, where existing vehicle, location and wealth of households influence policy impact, with implications for wealth and welfare over time; and 2) renewable energy subsidies, where existing capacities of firms influence policy impact on investments and capacity decisions, with implications for the evolution of market structure and market power."
Programme(s)
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
Multi-annual funding programmes that define the EU’s priorities for research and innovation.
-
HORIZON.1.1 - European Research Council (ERC)
MAIN PROGRAMME
See all projects funded under this programme
Topic(s)
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.
Funding Scheme
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.
HORIZON-ERC - HORIZON ERC Grants
See all projects funded under this funding scheme
Call for proposal
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.
(opens in new window) ERC-2022-STG
See all projects funded under this callHost institution
Net EU financial contribution. The sum of money that the participant receives, deducted by the EU contribution to its linked third party. It considers the distribution of the EU financial contribution between direct beneficiaries of the project and other types of participants, like third-party participants.
N-5045 Bergen
Norway
The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.