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Greening Electricity More Than Necessary: On the Excess Cost of Overlapping Regulation in EU Climate Policy

Author

Listed:
  • Christoph Böhringer

    (University of Oldenburg, Department of Economics)

  • Knut Einar Rosendahl

    (Statistics Norway, Research Department, Oslo, Norway)

Abstract

After the failure of the United Nations climate change conference at Copenhagen the EU is under domestic pressure to justify ambitious unilateral emissions reduction targets. Cost efficiency of EU-wide emission abatement becomes increasingly important in order to sustain EU leadership in climate policy. We argue that administered EU targets for renewable energies are doomed to make emission reduction much more costly than necessary and therfore could rather hinder than promote public support to unilateral action.

Suggested Citation

  • Christoph Böhringer & Knut Einar Rosendahl, 2010. "Greening Electricity More Than Necessary: On the Excess Cost of Overlapping Regulation in EU Climate Policy," Working Papers V-326-10, University of Oldenburg, Department of Economics, revised May 2010.
    • Handle: RePEc:old:dpaper:326
    as

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    File URL: http://www.vwl.uni-oldenburg.de/download/V-326-10.pdf
    File Function: First version, 2010
    Download Restriction: no
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    More about this item

    Keywords

    EU Climate Policy; Emission Quotas; Green Quotas; Overlapping Regulation;
    All these keywords.

    JEL classification:

    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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