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Assessment of the Macro-Economic Effects of Domestic Climate Policies for Finland


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  • Heikki Kemppi
  • Adriaan Perrels
  • Antti Lehtilä


This is the final report on macro-economic cost assessment of a domestic climate policy programme for Finland. The core assessment work was done with an energy systems model (EFOM) soft linked with a macro-economic model (KESSU). The study was carried out in co-operation with VTT Energy. The policy programme consisted of both pricing measures and prescriptions. From an engineering-economic viewpoint the use of more nuclear looks economically advantageous, but from a macro-economic viewpoint the advantage is less prominent. Use of energy taxes combined with tax recycling seems from a macro-economic viewpoint less harmful than a purely prescriptive programme. Macro-economic cost of a purely domestic policy package for the first commitment period amount to about 0,5% of Finnish GDP in 2010. The study was financed by the ministries of Trade and Industry, Environment and VATT/Ministry of Finance.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Research Reports with number 82.

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Date of creation: 11 Dec 2001
Date of revision:
Handle: RePEc:fer:resrep:82

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Keywords: Climate policy; assessment; carbon tax; energy tax;

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Cited by:
  1. Adriaan Perrels & Tarja Tuovinen, 2012. "The Effectiveness of Differentiation of the Finnish Car Purchase Tax according to Carbon Dioxide Emission Performance," Research Reports 168, Government Institute for Economic Research Finland (VATT).
  2. Leena Kerkelä & Johanna Pohjola & Raisa Mäkipää, 2003. "Who Gains from Credited Forest Carbon Sinks: Finland and other Annex I Countries in Comparison," Discussion Papers 291, Government Institute for Economic Research Finland (VATT).


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