Case Study

Evaluating a National Decarbonization Proposal

A high-income country with high per capita CO2 emissions currently generates 85% of its electricity from fossil fuels and has relatively low petrol prices. A new government proposes a plan to significantly reduce national emissions by offering large subsidies for electric vehicles, making them cheaper to purchase than conventional gasoline-powered cars. The plan does not include any new policies for electricity generation or fuel pricing. Evaluate the likely effectiveness of this specific plan in achieving a substantial reduction in the country's overall CO2 emissions. Justify your evaluation.

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Updated 2025-07-27

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