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Two Decades of European Climate Policy: A Critical Appraisal

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  • Christoph Böhringer

Abstract

Climate change ranks high on the policy agenda of the European Union (EU), which considers itself a leading force in the battle against anthropogenic climate change. The EU is committed to the objective of limiting the rise in global average temperature to no more than 2°C above preindustrial levels to prevent dangerous anthropogenic interference with the climate system. This article provides a critical appraisal of two decades of EU climate policy. Based on the global nature of climate change, we present three criteria for sound unilateral action and evaluate current EU climate policy against these criteria. We find that the actual implementation of EU climate policies is likely to make emission abatement much more costly than necessary. (JEL: H21, H23, Q58) Copyright 2014, Oxford University Press.

Suggested Citation

  • Christoph Böhringer, 2014. "Two Decades of European Climate Policy: A Critical Appraisal," Review of Environmental Economics and Policy, Association of Environmental and Resource Economists, vol. 8(1), pages 1-17, January.
    • Handle: RePEc:oup:renvpo:v:8:y:2014:i:1:p:1-17
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    File URL: http://hdl.handle.net/10.1093/reep/ret018
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    Cited by:

    1. Frédéric Babonneau & Alain Haurie & Marc Vielle, 2016. "Assessment of balanced burden-sharing in the 2050 EU climate/energy roadmap: a metamodeling approach," Climatic Change, Springer, vol. 134(4), pages 505-519, February.
    2. Mihaela Simionescu & Wadim Strielkowski & Manuela Tvaronavičienė, 2020. "Renewable Energy in Final Energy Consumption and Income in the EU-28 Countries," Energies, MDPI, vol. 13(9), pages 1-18, May.
    3. Mulder, Machiel & Zeng, Yuyu, 2018. "Exploring interaction effects of climate policies: A model analysis of the power market," Resource and Energy Economics, Elsevier, vol. 54(C), pages 165-185.
    4. Aleksandar Zaklan & Bente Bauer, 2015. "Europe's Mechanism for Countering the Risk of Carbon Leakage," DIW Roundup: Politik im Fokus 72, DIW Berlin, German Institute for Economic Research.
    5. Marc Vielle, 2020. "Navigating various flexibility mechanisms under European burden-sharing," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(2), pages 267-313, April.
    6. Babonneau, Frédéric & Haurie, Alain & Vielle, Marc, 2018. "Welfare implications of EU Effort Sharing Decision and possible impact of a hard Brexit," Energy Economics, Elsevier, vol. 74(C), pages 470-489.
    7. Perino, Grischa & Willner, Maximilian, 2017. "Remove or reserve? Allowance prices and design choices in Phase IV of the EU Emission Trading System," WiSo-HH Working Paper Series 36, University of Hamburg, Faculty of Business, Economics and Social Sciences, WISO Research Laboratory.
    8. Böhringer, Christoph & Cuntz, Alexander & Harhoff, Dietmar & Asane-Otoo, Emmanuel, 2017. "The impact of the German feed-in tariff scheme on innovation: Evidence based on patent filings in renewable energy technologies," Energy Economics, Elsevier, vol. 67(C), pages 545-553.
    9. Böhringer, Christoph & Keller, Andreas & Bortolamedi, Markus & Rahmeier Seyffarth, Anelise, 2016. "Good things do not always come in threes: On the excess cost of overlapping regulation in EU climate policy," Energy Policy, Elsevier, vol. 94(C), pages 502-508.
    10. Christophe Bonneuil & Pierre-Louis Choquet & Benjamin Franta, 2021. "Early warnings and emerging accountability: Total’s responses to global warming, 1968-2021," Post-Print halshs-03390521, HAL.
    11. Christophe Bonneuil & Pierre-Louis Choquet & Benjamin Franta, 2021. "Early warnings and emerging accountability: Total’s responses to global warming, 1968-2021," Sciences Po Economics Publications (main) halshs-03390521, HAL.
    12. Corradini, Massimiliano & Costantini, Valeria & Markandya, Anil & Paglialunga, Elena & Sforna, Giorgia, 2018. "A dynamic assessment of instrument interaction and timing alternatives in the EU low-carbon policy mix design," Energy Policy, Elsevier, vol. 120(C), pages 73-84.
    13. Jarke, Johannes & Perino, Grischa, 2017. "Do renewable energy policies reduce carbon emissions? On caps and inter-industry leakage," Journal of Environmental Economics and Management, Elsevier, vol. 84(C), pages 102-124.
    14. Grischa Perino, 2015. "Climate Campaigns, Cap and Trade, and Carbon Leakage: Why Trying to Reduce Your Carbon Footprint Can Harm the Climate," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 2(3), pages 469-495.
    15. Eliasson, Jonas & Proost, Stef, 2015. "Is sustainable transport policy sustainable?," Transport Policy, Elsevier, vol. 37(C), pages 92-100.
    16. Mulder, Machiel & Zomer, Sigourney P.E., 2016. "Contribution of green labels in electricity retail markets to fostering renewable energy," Energy Policy, Elsevier, vol. 99(C), pages 100-109.
    17. Best, Frank & Tang, Anita, 2024. "Assessing the Effectiveness of EU Countries in Implementing the Paris Agreement," EconStor Preprints 300280, ZBW - Leibniz Information Centre for Economics.
    18. Gritsenko, Daria, 2024. "Advancing UN digital cooperation: Lessons from environmental policy and governance," World Development, Elsevier, vol. 173(C).
    19. Massimiliano Corradini & Valeria Costantini & Anil Markandya & Elena Paglialunga & Giorgia Sforna, 2018. "Some reflections on policy mix in the EU low-carbon strategy," Departmental Working Papers of Economics - University 'Roma Tre' 0236, Department of Economics - University Roma Tre.
    20. Su, Chi Wei & Wei, Shenkai & Wang, Yan & Tao, Ran, 2024. "How does climate policy uncertainty affect the carbon market?," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    21. Torben K. Mideksa, 2021. "Leadership and Climate Policy," CESifo Working Paper Series 9054, CESifo.
    22. Jong, Thijs & Couwenberg, Oscar & Woerdman, Edwin, 2014. "Does EU emissions trading bite? An event study," Energy Policy, Elsevier, vol. 69(C), pages 510-519.

    More about this item

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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