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How can social equity concerns related to climate policy be addressed successfully? Would an elaborate system of taxes and transfers be sufficient, or is targeted redistribution of the revenues derived from carbon pricing also necessary? How would such mechanisms affect public acceptance of carbon pricing?9 As a last set of research questions, it is important to learn how the cognitive basis, e.g. underlying attitudes, to climate change and climate policy could be strengthened and a supportive societal mindset for sustainability could be formed. What could be the role, for instance, of increased education efforts, especially in the STEM fields? How important is transparency in political actions and communications? And, finally, how can we encourage sustainable consumption behavior while maintaining consumer sovereignty? 12.4 Conclusions Energy- and material-intensive sectors that are strongly based on fossil fuels face enormous chal- lenges in transforming their products, processes, and business models. A prominent example is the chemical industry, which currently uses fossil fuels both for its energy and its raw material needs. The sector needs effective technological, regulatory, and business solutions to transform into a sustainable circular economy, while taking into account the interests of the various stake- holders to the industry. Technological neutrality is key for an efficient transition, as this paradigm ascertains flexibility regarding both innovations and future challenges. Therefore, we suggest an integrative, involving, and intelligent approach which considers developments (i) from the industry and consumer perspectives, (ii) in an interdisciplinary approach, and (iii) with smart regulation and governance. The research questions emerging from this conceptualization of the task of managing the transition to a circular economy are structured along the lines of relevant actors and levels of political decision making, leading to a three-dimensional research hierarchy, from the global to the national and local levels. On the global level, the research question of how to find an effective, efficient, and fair governance structure is of major importance from societal, political, technological, and economic perspectives. For Europe, the challenge of finding the best governance structure is also of utmost importance. However, the corresponding research questions are more concrete: for example, how to trigger and secure investments, regulate emissions, and involve consumers and other stakeholders effectively. On the local level, the research questions become naturally even more applied. Again, dealing with governance issues, aspects of national regulation, economic incentives, distributive 9Cronin et al. [14], Goulder et al. [15], and Williams et al. [16] provide empirical assessments of the distributional effects of carbon taxation on US households and, in particular, of the redistribution of the corresponding revenues which might be implemented to fend off the potentially regressive nature of carbon taxes. Feng et al. [17] provide similar estimates for households in the UK. Ganapati et al. [18] and Weyl and Fabinger [19] document for the US the intensity of the pass-though of energy price-driven changes in input costs to consumers and discuss the key aspects of tax incidence under imperfect competition. 126PDF Image | sustainable production of fuels and chemicals
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