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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), Italy and Euro-Mediterranean Center on Climate Change (CMCC), Italy)

  • Ilkka Keppo

    (University College London, UCL Energy Institute, UK)

  • Johannes Bollen

    (CPB, Den Haag, Netherlands)

  • Samuel Carrara

    (Fondazione Eni Enrico Mattei (FEEM), Italy and Euro-Mediterranean Center on Climate Change (CMCC), Italy)

  • Hannah Förster

    (Öko-Institut, Germany)

  • Michael Hübler

    (Centre for European Economic Research (ZEW), Mannheim, Germany)

  • Amit Kanudia

    (KanORS-EMR, New Delhi, India)

  • Sergey Paltsev

    (Massachusetts Institute of Technology (MIT), Joint Program on the Science and Policy of Global Change, US)

  • Ronald Sands

    (U.S. Department of Agriculture, Economic Research Service, USA)

  • Katja Schumacher

    (Öko-Institut, 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 Sands & Katja Schumacher, 2014. "European-Led Climate Policy Versus Global Mitigation Action. Implications on Trade, Technology, and Energy," Working Papers 2014.30, Fondazione Eni Enrico Mattei.
  • Handle: RePEc:fem:femwpa:2014.30
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    References listed on IDEAS

    as
    1. Paltsev, Sergey & Jacoby, Henry D. & Reilly, John M. & Ejaz, Qudsia J. & Morris, Jennifer & O'Sullivan, Francis & Rausch, Sebastian & Winchester, Niven & Kragha, Oghenerume, 2011. "The future of U.S. natural gas production, use, and trade," Energy Policy, Elsevier, vol. 39(9), pages 5309-5321, September.
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    More about this item

    Keywords

    Climate Change; Stabilization Policy; International Participation;

    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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