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Assessment of the Macro-Economic Effects of Domestic Climate Policies for Finland


  • Kemppi, Heikki
  • Perrels, Adriaan
  • Lehtilä, Antti


This is the final report on macro-economic cost assessment of a domestic climate policy programme for Finland. The core assessment work was done with an energy systems model (EFOM) soft linked with a macro-economic model (KESSU). The study was carried out in co-operation with VTT Energy. The policy programme consisted of both pricing measures and prescriptions. From an engineering-economic viewpoint the use of more nuclear looks economically advantageous, but from a macro-economic viewpoint the advantage is less prominent. Use of energy taxes combined with tax recycling seems from a macro-economic viewpoint less harmful than a purely prescriptive programme. Macro-economic cost of a purely domestic policy package for the first commitment period amount to about 0,5% of Finnish GDP in 2010. The study was financed by the ministries of Trade and Industry, Environment and VATT/Ministry of Finance.

Suggested Citation

  • Kemppi, Heikki & Perrels, Adriaan & Lehtilä, Antti, 2001. "Assessment of the Macro-Economic Effects of Domestic Climate Policies for Finland," Research Reports 82, VATT Institute for Economic Research.
  • Handle: RePEc:fer:resrep:82

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    Cited by:

    1. Kerkelä, Leena & Pohjola, Johanna & Mäkipää, Raisa, 2003. "Who Gains from Credited Forest Carbon Sinks: Finland and other Annex I Countries in Comparison," Discussion Papers 291, VATT Institute for Economic Research.
    2. Perrels, Adriaan & Tuovinen, Tarja, 2012. "The Effectiveness of Differentiation of the Finnish Car Purchase Tax according to Carbon Dioxide Emission Performance," Research Reports 168, VATT Institute for Economic Research.


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