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The effects of a sudden CO2 reduction in Spain

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  • Xavier Labandeira
  • Miguel Rodríguez

Abstract

Spanish emissions of carbon dioxide have grown by more than 40% in 2004 with respect to 1990. This is not compatible with the EU allocation of Kyoto-mandated CO2 reduction, even taking into account that Spanish emissions are allowed to rise by 15% in 2010. The reasons for this situation stem from a combination of economic growth and an inefficient energy domain, coupled with a total absence of climate change policies. In this paper, we use a static general equilibrium model to assess the effects of a sudden and intense (ie, with a limited time to carry out significant abatement) CO2 reduction by the Spanish economy. Our results show that the costs of immediate and medium-size reductions are not significant in the short run and could lead to the attaining of the EU agreed emissions level for Spain. However, delaying such action means that the degree of Spanish CO2 emission reduction is much higher and that economic costs are far more important.

Suggested Citation

  • Xavier Labandeira & Miguel Rodríguez, 2004. "The effects of a sudden CO2 reduction in Spain," Working Papers 0408, Universidade de Vigo, Departamento de Economía Aplicada.
    • Handle: RePEc:vig:wpaper:0408
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    Cited by:

    1. Alonso, Gustavo & Valle, Edmundo del, 2013. "Economical analysis of an alternative strategy for CO2 mitigation based on nuclear power," Energy, Elsevier, vol. 52(C), pages 66-76.
    2. Childs, Jack, 2012. "Kyoto and the EU CEP 2020: A Dynamic Study of the impacts on the Agricultural Sector in Spain," 86th Annual Conference, April 16-18, 2012, Warwick University, Coventry, UK 135074, Agricultural Economics Society.

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    JEL classification:

    • P - Political Economy and Comparative Economic Systems
    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Z - Other Special Topics

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