Automaticity and delegation in climate targets

Abstract

The problem of dynamically inconsistent preferences is common in domestic and international politics. A country's - or indeed the world's - future health (economic, social, environmental, etc.) often requires policy adjustments that are costly and unpopular. Governments face formidable pressures to underinvest today in policies whose consequences are optimal in the future. This challenge may be particularly acute when leaders face accountability mechanisms that induce frequent policy responsiveness such as elections. Policies that automatically adjust in response to other changes are a common proposed solution to these types of problems. To be successful, index-based approaches typically also require delegation to an independent authority. In the realm of climate mitigation, we argue that a combination of automaticity and delegation can provide a promising combination for policymakers to consider as they attempt to develop enduring solutions to climate change.