Air Pollution Policy in Europe: Quantifying the Interaction with Greenhouse Gases and Climate Change Policies
AbstractThis paper (CPB/PBL) uses the computable general equilibrium model WorldScan to analyse interactions between EUâ€™s air pollution and climate change policies. Covering the entire world and seven EU countries, WorldScan simulates economic growth in a neo-classical recursive dynamic framework, including emissions and abatement of greenhouse gases (CO 2, N2O and CH4) and air pollutants (SO2, NOx, NH3 and PM2.5). Abatement includes the possibility of using end-of-pipe control options that remove pollutants without affecting the emissionproducing activity itself. This paper analyses several variants of EUâ€™s air pollution policies for the year 2020. Air pollution policy will depend on end-of-pipe controls for not more than 50%, thus also at least 50% of the required emission reduction will come from changes in the use of energy through efficiency improvements, fuel switching and other structural changes in the economy. Greenhouse gas emissions thereby decrease, which renders climate change policies less costly. Our results show that carbon prices will fall, but not more than 33%, although they could drop to zero when the EU agrees on a more stringent air pollution policy.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 220.
Date of creation: Oct 2012
Date of revision:
Find related papers by JEL classification:
- Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
- Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters
- Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-13 (All new papers)
- NEP-ENE-2012-10-13 (Energy Economics)
- NEP-ENV-2012-10-13 (Environmental Economics)
- NEP-RES-2012-10-13 (Resource Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rive, Nathan, 2010. "Climate policy in Western Europe and avoided costs of air pollution control," Economic Modelling, Elsevier, vol. 27(1), pages 103-115, January.
- Boeters, Stefan & Koornneef, Joris, 2011.
"Supply of renewable energy sources and the cost of EU climate policy,"
Elsevier, vol. 33(5), pages 1024-1034, September.
- Stefan Boeters & J. Koornneef, 2010. "Supply of renewable energy sources and the cost of EU climate policy," CPB Discussion Paper 142, CPB Netherlands Bureau for Economic Policy Analysis.
- Bollen, Johannes & van der Zwaan, Bob & Brink, Corjan & Eerens, Hans, 2009. "Local air pollution and global climate change: A combined cost-benefit analysis," Resource and Energy Economics, Elsevier, vol. 31(3), pages 161-181, August.
- Bohringer, Christoph & Rutherford, Thomas F., 2008. "Combining bottom-up and top-down," Energy Economics, Elsevier, vol. 30(2), pages 574-596, March.
- Arjan Lejour & Paul Veenendaal & Gerard Verweij & Nico van Leeuwen, 2006. "Worldscan; a model for international economic policy analysis," CPB Document 111, CPB Netherlands Bureau for Economic Policy Analysis.
- Boeters, Stefan & Bollen, Johannes, 2012.
"Fossil fuel supply, leakage and the effectiveness of border measures in climate policy,"
Elsevier, vol. 34(S2), pages S181-S189.
- Stefan Boeters & Johannes Bollen, 2012. "Fossil Fuel Supply, Leakage and the Effectiveness of Border Measures in Climate Policy," CPB Discussion Paper 215, CPB Netherlands Bureau for Economic Policy Analysis.
- Copeland,B.R. & Scott Taylor,M., 2003.
"Trade, growth and the environment,"
10, Wisconsin Madison - Social Systems.
- Gerlagh, Reyer & Dellink, Rob & Hofkes, Marjan & Verbruggen, Harmen, 2002. "A measure of sustainable national income for the Netherlands," Ecological Economics, Elsevier, vol. 41(1), pages 157-174, April.
- Bollen, Johannes & Hers, Sebastiaan & van der Zwaan, Bob, 2010.
"An integrated assessment of climate change, air pollution, and energy security policy,"
Elsevier, vol. 38(8), pages 4021-4030, August.
- Bob van der Zwaan & Johannes Bollen & Sebastiaan Hers, 2009. "An Integrated Assessment of Climate Change, Air Pollution, and Energy Security Policy," Working Papers 2009.105, Fondazione Eni Enrico Mattei.
- Dellink, Rob & Hofkes, Marjan & van Ierland, Ekko & Verbruggen, Harmen, 2004. "Dynamic modelling of pollution abatement in a CGE framework," Economic Modelling, Elsevier, vol. 21(6), pages 965-989, December.
- van Vuuren, D.P. & Cofala, J. & Eerens, H.E. & Oostenrijk, R. & Heyes, C. & Klimont, Z. & den Elzen, M.G.J. & Amann, M., 2006. "Exploring the ancillary benefits of the Kyoto Protocol for air pollution in Europe," Energy Policy, Elsevier, vol. 34(4), pages 444-460, March.
- Vollebergh, Herman R.J. & Kemfert, Claudia, 2005. "The role of technological change for a sustainable development," Ecological Economics, Elsevier, vol. 54(2-3), pages 133-147, August.
- Johannes Bollen & Machiel Mulder & T. Manders, 2004. "Four futures for energy markets and climate change," CPB Special Publication 52, CPB Netherlands Bureau for Economic Policy Analysis.
- Burtraw, Dallas & Krupnick, Alan & Palmer, Karen & Paul, Anthony & Toman, Michael & Bloyd, Cary, 2003. "Ancillary benefits of reduced air pollution in the US from moderate greenhouse gas mitigation policies in the electricity sector," Journal of Environmental Economics and Management, Elsevier, vol. 45(3), pages 650-673, May.
- Johannes Bollen & Bruno Guay & Stéphanie Jamet & Jan Corfee-Morlot, 2009. "Co-Benefits of Climate Change Mitigation Policies: Literature Review and New Results," OECD Economics Department Working Papers 693, OECD Publishing.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ().
If references are entirely missing, you can add them using this form.