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European-Led Climate Policy Versus Global Mitigation Action: Implications On Trade, Technology, And Energy

Author

Listed:
  • ENRICA DE CIAN

    (Fondazione Eni Enrico Mattei (FEEM), Euro-Mediterranean Center on Climate Change (CMCC), Isola di San Giorgio Maggiore, 30124 Venezia, Italy)

  • ILKKA KEPPO

    (University College London, UCL Energy Institute, 14 Upper Woburn Place, London, WC1H 0NN, UK)

  • JOHANNES BOLLEN

    (Centraal Planbureau t.a.v. Johannes Bollen, P. O. Box 80510, 2508 GM, The Hague, The Netherlands)

  • SAMUEL CARRARA

    (Fondazione Eni Enrico Mattei (FEEM), Euro-Mediterranean Center on Climate Change (CMCC), Isola di San Giorgio Maggiore, 30124 Venezia, Italy)

  • HANNAH FÖRSTER

    (Öko-Institut, Germany, Schicklerstraße 5-7, 10179 Berlin, Germany)

  • MICHAEL HÜBLER

    (Centre for European Economic Research (ZEW), P. O. Box 103443, 68034 Mannheim, Germany)

  • AMIT KANUDIA

    (KanORS-EMR, SDF L-7B, NSEZ, Dadri Road Phase II, Noida UP 201305, India)

  • SERGEY PALTSEV

    (Massachusetts Institute of Technology, 77 Massachusetts Ave, E19-411, Cambridge, MA 02139, USA)

  • RONALD D. SANDS

    (U.S. Department of Agriculture, Economic Research Service, 1400 Independence Ave. SW, Mail Stop 1800, Washington DC 20250, USA)

  • KATJA SCHUMACHER

    (Öko-Institut, Germany, Schicklerstraße 5-7, 10179 Berlin, Germany)

Abstract

This paper examines how changes in an international climate regime would affect the European decarbonization strategy and costs through the mechanisms of trade, technology, and innovation. We present the results from the Energy Modeling Forum (EMF) model comparison study on European climate policy to 2050. Moving from a no-policy scenario to an existing-policies case reduces all energy imports, on average. Introducing a more stringent climate policy target for the EU only leads to slightly greater global emission reductions. Consumers and producers in Europe bear most of the additional burden and inevitably face some economic losses. More ambitious mitigation action outside Europe, especially when paired with a well-operating global carbon market, could reduce the burden for Europe significantly. Because of global learning, the costs of wind and especially solar-PV in Europe would decline below the levels observed in the existing-policy case and increased R&D spending outside the EU would leverage EU R&D investments as well.

Suggested Citation

  • 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.
    • Handle: RePEc:wsi:ccexxx:v:04:y:2013:i:supp0:n:s2010007813400022
    DOI: 10.1142/S2010007813400022
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    More about this item

    Keywords

    Climate change; stabilization policy; international participation;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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