4.6.8.1 Policymakers

Governments must step up to address inequality through improved legal and fiscal policy (Green, 2021). Domestic fiscal policy needs to subsidise or compensate lower-income households for the higher costs that accompany regulations like carbon pricing, emissions trading and new standards. Failure to do so could set off a cascade of unintended consequences and increase poverty, inequality and other impacts like popular protest and political instability. Legal mechanisms to ensure procedural, reparative and distributive justice are also imperative. PTPs require intervening in complex systems that we do not fully understand. Policymaking therefore needs to become more flexible and anticipatory, and include the ability to correct for unintended consequences. Such anticipatory governance mechanisms could include ringfencing funding to support unintended consequences as well as ongoing review of policy interventions to assess their effectiveness and equity and allow for a change of direction if necessary. Policy and governance actors attracted to positive social tipping interventions should also recognise that research is constantly updating and so there is a need to be aware of hidden assumptions, biases and potential for backfires, rebounds and other unwelcome results (Sterman, 2002). 

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