Uncertainty and climate policy in the Netherlands: measure and economic effects

Analyses

Uncertainty about how climate policy will evolve comes at a cost, making the transition towards climate neutrality more difficult and expensive for everyone involved. Climate policy uncertainty (CPU) is rising, both in absolute terms and as a share of total uncertainty.

Gepubliceerd: 08 mei 2025

Door: Fulvia Marotta Maria Sole Pagliari Jasper de Winter

Using a new media-based index of Dutch climate policy uncertainty, and monthly macroeconomic data, we show that increases in CPU are associated with measurable declines in key economic indicators. Investments are particularly sensitive to climate policy uncertainty.

Our results also highlight that the timing and structure of policy processes influence how uncertainty develops. While some level of uncertainty is inevitable, and in some cases necessary to allow for flexibility and innovation, reducing uncertainty is both possible and desirable from an economic perspective.

Uncertainty and climate policy in the Netherlands: measure and economic effects

934KB PDF
Download Uncertainty and climate policy in the Netherlands: measure and economic effects

Ontdek gerelateerde artikelen