Evaluating policy packages for a low-carbon transitions-Principles and applications

The low carbon transition has become a major challenge for countries in order to limit global temperature increase to acceptable levels. Steering this transition is a very challenging task and the topic of this Special Issue. Transitions require change at system level which asks for a search of appropriate change agents and a proper design of incentives. Economic analysis could be particularly helpful here by focusing on i) descriptive instead of normative analysis of the complexities of the system, and ii) evaluation of policy packages instead of single policy instruments due to the multiple market failure context. In addition I introduce the different contributions in this Special Issue showing how they add to a better understanding of the steering question and how this should help policy makers to improve policies along the transition path.