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Combining climate and energy policies : synergies or antagonism ? Modeling interactions with energy efficiency instruments

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  • Oskar Lecuyer

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

  • Ruben Bibas

    (CIRED - centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)

Abstract

In addition to the already present Climate and Energy package, the European Union (EU) plans to include a binding target to reduce energy consumption. We analyze the rationales the EU invokes to justify such an overlapping and develop a minimal common framework to study interactions arising from the combination of instruments reducing emissions, promoting renewable energy (RE) production and reducing energy demand through energy efficiency (EE) investments. We find that although all instruments tend to reduce GHG emissions and although a price on carbon tends also to give the right incentives for RE and EE, the combination of more than one instrument leads to significant antagonisms regarding major objectives of the policy package. The model allows to show in a single framework and to quantify the antagonistic effects of the joint promotion of RE and EE. We also show and quantify the effects of this joint promotion on ETS permit price, on wholesale market price and on energy production levels.

Suggested Citation

  • Oskar Lecuyer & Ruben Bibas, 2012. "Combining climate and energy policies : synergies or antagonism ? Modeling interactions with energy efficiency instruments," CIRED Working Papers hal-00866439, HAL.
    • Handle: RePEc:hal:ciredw:hal-00866439
    Note: View the original document on HAL open archive server: https://hal.science/hal-00866439
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    References listed on IDEAS

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    Cited by:

    1. Giliberto Capano & Michael Howlett, 2020. "The Knowns and Unknowns of Policy Instrument Analysis: Policy Tools and the Current Research Agenda on Policy Mixes," SAGE Open, , vol. 10(1), pages 21582440199, January.
    2. Michael Howlett & Pablo del Rio, 2015. "The parameters of policy portfolios: verticality and horizontality in design spaces and their consequences for policy mix formulation," Environment and Planning C, , vol. 33(5), pages 1233-1245, October.

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    More about this item

    Keywords

    Renewable energy; energy efficiency; energy policy; climate policy; policy interaction.; énergie renouvelable; efficacité énergétique; politique énergétique; politique climatique; interaction entre politiques;
    All these keywords.

    JEL classification:

    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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