Adaptive Policy Design to Reduce Carbon Emissions: A System-of-Systems Perspective

This paper presents an adaptive policy design approach based on a system-of-systems (SoS) perspective. Using a case of carbon emissions reduction in the residential sector, the SoS perspective is used as a way to structure the policy issue into interdependent relevant systems. This representation of the system provides a framework to test a large number of hypotheses about the evolution of the system´s performance using computational experiments. In particular, in a situation where the realized emission level misses the intermediate target, policies can be adapted to meet the policy target. Our approach shows the different policy designs that decision-makers can envision to influence the overall system performance.