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The EU Decarbonisation Roadmap 2050—What way to walk?

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  • Hübler, Michael
  • Löschel, Andreas

Abstract

We carry out a detailed computable general equilibrium (CGE) analysis of the EU Decarbonisation Roadmap 2050 on a macroeconomic and on a sectoral level. Herein, we study a Reference scenario that implements existing EU policies as well as 3 unilateral and 3 global climate action scenarios. We identify global climate action with international emissions trading and the full equalisation of CO2 prices across all (EU) sectors as an economically reasonable policy option to avoid additional costs of the Decarbonisation Roadmap to a large extent. This policy option may include CDM (Clean Development Mechanism in the sense of ‘where’-flexibility) in an extended form if there are countries without emissions caps. Moreover, we identify diverse sectoral effects in terms of output, investment, emissions and international competitiveness. We conclude that the successful realisation of the EU Decarbonisation Roadmap probably requires a wise and joint consideration of technology, policy design and sectoral aspects.

Suggested Citation

  • Hübler, Michael & Löschel, Andreas, 2013. "The EU Decarbonisation Roadmap 2050—What way to walk?," Energy Policy, Elsevier, vol. 55(C), pages 190-207.
  • Handle: RePEc:eee:enepol:v:55:y:2013:i:c:p:190-207
    DOI: 10.1016/j.enpol.2012.11.054
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    Cited by:

    1. Enrica De Cian & Ilkka Keppo & Johannes Bollen & Samuel Carrara & Hannah Förster & Michael Hübler & Amit Kanudia & Sergey Paltsev & Ronald D. Sands & Katja Schumacher, 2013. "European-Led Climate Policy Versus Global Mitigation Action: Implications On Trade, Technology, And Energy," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(supp0), pages 1-28.
    2. Hannah Förster & Katja Schumacher & Enrica De Cian & Michael Hübler & Ilkka Keppo & Silvana Mima & Ronald D. Sands, 2013. "European Energy Efficiency And Decarbonization Strategies Beyond 2030 — A Sectoral Multi-Model Decomposition," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 4(supp0), pages 1-29.
    3. Fragkos, Panagiotis & Tasios, Nikos & Paroussos, Leonidas & Capros, Pantelis & Tsani, Stella, 2017. "Energy system impacts and policy implications of the European Intended Nationally Determined Contribution and low-carbon pathway to 2050," Energy Policy, Elsevier, vol. 100(C), pages 216-226.
    4. Hübler, Michael & Voigt, Sebastian & Löschel, Andreas, 2014. "Designing an emissions trading scheme for China—An up-to-date climate policy assessment," Energy Policy, Elsevier, vol. 75(C), pages 57-72.

    More about this item

    Keywords

    EU; Roadmap 2050; Copenhagen Pledges;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F18 - International Economics - - Trade - - - Trade and Environment
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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