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Energy market projections and differentiated carbon abatement in the European Union

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  • Böhringer, Christoph
  • Jensen, Jesper
  • Rutherford, Thomas F.

Abstract

We analyze the economic effects of the differentiated targets for carbon abatement in six European Union member states. Our recursively-dynamic model includes a detailed representation of trade and energy consumption and incorporates optimistic projections for future energy markets provided by the European Commission as the Business-as-Usual scenario. In the base case we find that the EU implementation of the Kyoto Protocol implies low overall costs and a relatively even cost distribution across member states. We also show that a less optimistic development in energy efficiency implies higher costs in all countries, especially in those with high abatement costs. Finally, we find that uniform abatement targets increase overall costs marginally but changes the cost distribution significantly, holding total EU emissions constant. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 99-11.

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Date of creation: 1999
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Handle: RePEc:zbw:zewdip:5228

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  1. Klaus Conrad & Tobias Schmidt, 1998. "Economic Effects of an Uncoordinated Versus a Coordinated Carbon Dioxide Policy in the European Union: An Applied General Equilibrium Analysis," Economic Systems Research, Taylor & Francis Journals, vol. 10(2), pages 161-182.
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Cited by:
  1. Böhringer, Christoph & Welsch, Heinz, 2001. "Contraction of global carbon emissions: how acceptable are alternative emission entitlement schemes," ZEW Discussion Papers 01-65, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  2. Böhringer, Christoph, 2000. "Industry-level emission trading between power producers in the EU," ZEW Discussion Papers 00-46, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Böhringer, Christoph & Lange, Andreas, 2003. "Efficiency, Compensation, and Discrimination: What is at Stake When Implementing the EU Emissions Trading Scheme?," ZEW Discussion Papers 03-73, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Böhringer, Christoph & Welsch, Heinz, 1999. "C & C - contraction and convergence of carbon emissions: the economic implications of permit trading," ZEW Discussion Papers 99-13, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Böhringer, Christoph, 2001. "Climate politics from Kyoto to Bonn: from little to nothing?!?," ZEW Discussion Papers 01-49, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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