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The 2020 European Climate Goals and the Electricity Sector

Author

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  • Eskeland, G.S.
  • Rive, N.
  • Mideksa, T.K.

Abstract

As a post‐Kyoto Protocol climate commitment, EU has announced a goal of reducing emissions of greenhouse gases by 20% by 2020. As a key contributor to industrial greenhouse gas emissions, and a sector with numerous possible technological options for CO2 abatement, the electricity sector will have an important role in this goal. In this paper, we assess the impacts of Europe’s 2020 climate policy on the electricity sector and electricity demand. First, we ask whether, for a cost effective reduction in Europe, what share of these emission reductions will be contributed by the electricity sector. The maintained hypothesis is that the electricity sector contributes more than 'its' 20%. We then go on to deconstruct this abatement contribution: we ask what share is contributed by technology and fuel substitution in electricity production, what is contributed by decreased electricity use by households, services and industry, and what share is contributed by changes in sectoral composition in manufacturing. Our model is a GTAP‐based CGE model centered around the EU‐25 member countries, energy‐intensive industries, and a treatment for recursive dynamics based on the GTAP‐Dyn model. We have modified the electricity sector to incorporate detailed bottom‐up information about outputs, inputs, and efficiencies of a range of generating technologies – both fossil and non‐fossil.

Suggested Citation

  • Eskeland, G.S. & Rive, N. & Mideksa, T.K., 2008. "The 2020 European Climate Goals and the Electricity Sector," Conference papers 331769, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331769
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    References listed on IDEAS

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