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Do climate policies hurt the economy? Lessons from the EU experience

In: Building a Climate Resilient Economy and Society

Author

Listed:
  • Carlo Carraro
  • Marinella Davide

Abstract

The European Union (EU) has a consolidated climate and energy policy, which has played a pioneering role by adopting a wide range of emission reduction measures. However, it is often claimed that these measures have a negative effect on the economy, especially in terms of growth and competitiveness. This chapter reviews the recent literature on the European experience to understand if these concerns are true. The authors’ analysis primarily focuses on studies assessing major economic indicators, such as costs, competitiveness, carbon leakage and income distribution, with the objective of highlighting both the limits and the opportunities of the EU’s regulatory framework, as well as its potential for reconciliation with socio-economic objectives.

Suggested Citation

  • Carlo Carraro & Marinella Davide, 2017. "Do climate policies hurt the economy? Lessons from the EU experience," Chapters, in: K. N. Ninan & Makoto Inoue (ed.), Building a Climate Resilient Economy and Society, chapter 16, pages 265-278, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:17181_16
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