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The fight against climate change: some proposals for action for Italy in Europe

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  • Luigi De Paoli

Abstract

The goal of this article is to formulate some proposals to reduce CO2 emissions with efficient and effective policies. After presenting three possible ways that countries can follow to define their policies for combating climate change, the article discusses the tools available to implement these policies. It then reviews the reasons why it would be preferable to set centrally the carbon price rather than limit the amount of emissions and let the market setting the price. On the basis of these considerations some concrete proposals for the policy of combating climate change in Italy and the EU are formulated. It is proposed that Italy re-introduces a carbon tax, called "climate contribution" and defines its evolution in a coordinated manner with the price of ETS emission permits. To make prices of the permits more stable and predictable, it is proposed to reform of the EU ETS by introducing a floor price rather than a market stability reserve. In addition to make the European climate policy more effective and rational, it is proposed that the floor price of emission permits is fixed in such a way that within a decade it is no longer convenient to use coal in electricity production (unless in this period the carbon capture and storage becomes competitive).

Suggested Citation

  • Luigi De Paoli, 2015. "The fight against climate change: some proposals for action for Italy in Europe," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(1), pages 9-27.
    • Handle: RePEc:fan:efeefe:v:html10.3280/efe2015-001002
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    References listed on IDEAS

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    6. Peter Cramton, Axel Ockenfels, and Steven Stoft, 2015. "An International Carbon-Price Commitment Promotes Cooperation," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
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    Cited by:

    1. Andrea Molocchi & Emanuela Recchini & Angelica Tudini, 2019. "Polluter Pays Principle in power production to gradually phase-out fossil fuels in Italy," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(1), pages 203-228.
    2. Luigi De Paoli, 2019. "The Italian draft National Energy-Climate Plan," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 0(1), pages 97-118.
    3. Gaspari, Michele & Lorenzoni, Arturo, 2018. "The governance for distributed energy resources in the Italian electricity market: A driver for innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3623-3632.
    4. Lucia Rotaris & Alessandro Gardelli, 2018. "Carbon Tax acceptability: A comparative experimental analysis," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2018(1), pages 117-132.
    5. Michel Damian & Luigi De Paoli, 2017. "Climate change: Back to development," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2017(3), pages 5-24.
    6. Luigi De Paoli, 2016. "The EU Emissions Trading System: For an effective and viable reform," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2016(1), pages 5-40.
    7. Michel Damian & Luigi de Paoli, 2018. "Climate change: Back to development," Post-Print hal-01870974, HAL.

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    More about this item

    JEL classification:

    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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