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Quantifying the Ancillary Benefits of the Representative Concentration Pathways on Air Quality in Europe

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  • Milan Ščasný

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  • Emanuele Massetti
  • Jan Melichar
  • Samuel Carrara

Abstract

This paper presents economic benefit estimates of air quality improvements in Europe that occur as a side effect of GHG emission reductions. We consider two climate policy scenarios from two representative concentration pathways (RCPs), in which radiative forcing levels are reached in 2100. The policy tool is a global uniform tax on all GHG emissions in the integrated assessment model WITCH. The resulting consumption patterns of fossil fuels are used to estimate the physical impacts and the economic benefits of pollution reductions on human health and on key assets by implementing the most advanced version of the ExternE methodology with its impact pathway analysis. The mitigation scenario compatible with $$+2\,^{\circ }\hbox {C}$$ + 2 ∘ C (RCP 2.6) reduces total pollution costs in Europe by 84 %. Discounted cumulative ancillary benefits are equal to about €1.7 trillion between 2015 and 2100, or €17 per abated tonne of $$\hbox {CO}_{2}$$ CO 2 in Europe. The less strict climate policy scenario (RCP 4.5) generates benefits equal to €15.5 per abated tonne of $$\hbox {CO}_{2}$$ CO 2 . Without discounting, the ancillary benefits are equal to €46 (RCP 2.6) and €51 (RCP 4.5) per tonne of $$\hbox {CO}_{2}$$ CO 2 abated. For both scenarios, the local benefits per tonne of $$\hbox {CO}_{2}$$ CO 2 decline over time and vary significantly across countries. Copyright Springer Science+Business Media Dordrecht 2015

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  • Milan Ščasný & Emanuele Massetti & Jan Melichar & Samuel Carrara, 2015. "Quantifying the Ancillary Benefits of the Representative Concentration Pathways on Air Quality in Europe," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 383-415, October.
  • Handle: RePEc:kap:enreec:v:62:y:2015:i:2:p:383-415
    DOI: 10.1007/s10640-015-9969-y
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    Cited by:

    1. Rečka, L. & Ščasný, M., 2016. "Impacts of carbon pricing, brown coal availability and gas cost on Czech energy system up to 2050," Energy, Elsevier, vol. 108(C), pages 19-33.
    2. repec:prg:jnlpol:v:2017:y:2017:i:6:id:1172:p:728-750 is not listed on IDEAS
    3. Karel Janda & Jan Malek & Lukas Recka, 2017. "The Influence of Renewable Energy Sources on the Czech Electricity Transmission System," Working Papers IES 2017/06, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised Mar 2017.
    4. repec:eee:ecolec:v:149:y:2018:i:c:p:62-73 is not listed on IDEAS

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    Keywords

    Ancillary benefits; Climate change mitigation; External costs; ExternE; Impact pathway analysis; Integrated assessment models; Q47; Q51; Q53; Q54;

    JEL classification:

    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects
    • 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 and their Management; Global Warming

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