December 22, 2025
Many countries assume that leading with subsidies (“carrots”) reduces the need for punitive policies (“sticks”) to achieve decarbonization goals. In this paper for Nature, co-authored by BESI Climate lead Jonas Meckling, the authors use an economic model that allows them to compare carrot- and stick-first policy decisions, finding that a carrot-first strategy still requires similar-sized sticks to a stick-first approach to achieve comparable levels of decarbonization.