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The Role of Environmental Economics in Recent Policy Making at the European Commission

Author

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  • J. Delbeke
  • G. Klaassen
  • T. van Ierland
  • P. Zapfel

Abstract

This article examines the use of environmental economics at the European Commission in recent policy making concerning climate change, energy, and air pollution. In particular, we describe economic analysis of policy options designed to help the European Union (EU) to achieve its objective of reducing greenhouse gas emissions by 20 percent and increasing the share of renewable energy to 20 percent by 2020. This analysis looked at cost-effectiveness and emission trading options as well as equity issues. We also discuss an economic analysis of policy options for including carbon capture and storage (CCS) in the EU Emissions Trading Scheme. The analysis finds that CCS could result in significant cost savings. The additional costs of making CCS mandatory or using subsidies were also estimated. Economic assessments prepared for the revision of the national emission ceiling directive suggest that air pollution objectives can be met at modest costs and that monetary benefits exceed costs. The assessments also find that limiting the additional costs for poorer Member States does not increase overall costs significantly and that when limited to regional zones, emissions trading of air pollutants could save costs but might lead to hot spots. Copyright 2010, Oxford University Press.

Suggested Citation

  • J. Delbeke & G. Klaassen & T. van Ierland & P. Zapfel, 2010. "The Role of Environmental Economics in Recent Policy Making at the European Commission," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 4(1), pages 24-43, Winter.
    • Handle: RePEc:oup:renvpo:v:4:y:2010:i:1:p:24-43
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    File URL: http://hdl.handle.net/10.1093/reep/rep020
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    Cited by:

    1. Karakosta, Charikleia & Flouri, Maria & Dimopoulou, Stamatia & Psarras, John, 2012. "Analysis of renewable energy progress in the western Balkan countries: Bosnia–Herzegovina and Serbia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5166-5175.
    2. Saveyn, Bert & Van Regemorter, Denise & Ciscar, Juan Carlos, 2011. "Economic analysis of the climate pledges of the Copenhagen Accord for the EU and other major countries," Energy Economics, Elsevier, vol. 33(S1), pages 34-40.
    3. Hector Pollitt & Philip Summerton & Ger Klaassen, 2015. "A model-based assessment of first-mover advantage and climate policy," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 17(2), pages 299-312, April.
    4. Howarth, Nicholas A.A. & Rosenow, Jan, 2014. "Banning the bulb: Institutional evolution and the phased ban of incandescent lighting in Germany," Energy Policy, Elsevier, vol. 67(C), pages 737-746.
    5. Thomas Sadler, 2013. "Carbon Capture and a Commercial Market for CO 2," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 19(2), pages 189-200, May.

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