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What Does Europe Pay for Clean Energy? Review of Macroeconomic Simulation Studies

Listed author(s):
  • Dannenberg, Astrid
  • Mennel, Tim
  • Moslener, Ulf

This paper analyses the macroeconomic costs of environmental regulation in European energy markets on the basis of existing macroeconomic simulation studies. The analysis comprises the European emssion trading scheme, energy taxes, measures in the transport sector, and the promotion of renewable energy sources. We find that these instruments affect the European economy, in particular the energy intensive industries and the industries that produce internationally tradeable goods. From a macroeconomic point of view, however, the costs of environmental regulation appear to be modest. The underlying environmental targets and the efficient design of regulation are key determinants for the cost burden.

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File URL: https://www.econstor.eu/bitstream/10419/24571/1/dp07019.pdf
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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 07-019.

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Date of creation: 2007
Handle: RePEc:zbw:zewdip:5507
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  1. Michael KOHLHAAS & Martin CAMES & Jochen DIEKMANN & Dieter SCHUMACHER & Katja SCHUMACHER, "undated". "Economic, Environmental and International Trade Effects of the EU Directive on Energy Tax Harmonization," EcoMod2004 330600079, EcoMod.
  2. Valentina Bosetti & Carlo Carraro & Marzio Galeotti, 2006. "Stabilisation Targets, Technical Change and the Macroeconomic Costs of Climate Change Control," Working Papers 2006.2, Fondazione Eni Enrico Mattei.
  3. Heinz Jansen & Ger Klaassen, 2000. "Economic Impacts of the 1997 EU Energy Tax: Simulations with Three EU-Wide Models," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 15(2), pages 179-197, February.
  4. Christoph Bohringer and Andreas Loschel, 2006. "Promoting Renewable Energy in Europe: A Hybrid Computable General Equilibrium Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 135-150.
  5. Gernot Klepper & Sonja Peterson, 2006. "Emissions Trading, CDM, JI, and More: The Climate Strategy of the EU," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 1-26.
  6. Adam B. Jaffe et al., 1995. "Environmental Regulation and the Competitiveness of U.S. Manufacturing: What Does the Evidence Tell Us?," Journal of Economic Literature, American Economic Association, vol. 33(1), pages 132-163, March.
  7. Peterson, Sonja, 2006. "Efficient abatement in separated carbon markets: A theoretical and quantitative analysis of the EU emissions trading scheme," Kiel Working Papers 1271, Kiel Institute for the World Economy (IfW).
  8. Common,Michael & Stagl,Sigrid, 2005. "Ecological Economics," Cambridge Books, Cambridge University Press, number 9780521016704, December.
  9. Christoph Böhringer & Andreas Lange, 2005. "Economic Implications of Alternative Allocation Schemes for Emission Allowances," Scandinavian Journal of Economics, Wiley Blackwell, vol. 107(3), pages 563-581, 09.
  10. Bach, Stefan & Kohlhaas, Michael & Meyer, Bernd & Praetorius, Barbara & Welsch, Heinz, 2002. "The effects of environmental fiscal reform in Germany: a simulation study," Energy Policy, Elsevier, vol. 30(9), pages 803-811, July.
  11. Valentina Bosetti, Carlo Carraro and Marzio Galeotti, 2006. "The Dynamics of Carbon and Energy Intensity in a Model of Endogenous Technical Change," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 191-206.
  12. Loschel, Andreas, 2002. "Technological change in economic models of environmental policy: a survey," Ecological Economics, Elsevier, vol. 43(2-3), pages 105-126, December.
  13. Jenkins, Rhys, 1998. "Environmental Regulation and International Competitiveness: A Review of Literature and Some European Evidence," UNU-INTECH Discussion Paper Series 01, United Nations University - INTECH.
  14. Christoph Bohringer & Tim Hoffmann & Andreas Lange & Andreas Loschel & Ulf Moslener, 2005. "Assessing Emission Regulation in Europe: An Interactive Simulation Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 1-22.
  15. Klaus Conrad & Andreas Löschel, 2005. "Recycling of eco-taxes, labor market Effects and the true cost of labor - A CGE analysis," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 259-278, November.
  16. Terry Barker & Jonathan Köhler, 1998. "Equity and ecotax reform in the EU: achieving a 10 per cent reduction in CO2 emissions using excise duties," Fiscal Studies, Institute for Fiscal Studies, vol. 19(4), pages 375-402, November.
  17. Martin Distelkamp & Dr. Christian Lutz & Prof. Dr. Bernd Meyer & Dr. Marc Ingo Wolter, 2004. "Schätzung der Wirkung umweltpolitischer Maßnahmen im Verkehrssektor unter Nutzung der Datenbasis der Gesamtrechnung des Statistischen Bundesamtes," GWS Discussion Paper Series 04-5, GWS - Institute of Economic Structures Research.
  18. Christoph Böhringer & Andreas Lange, 2005. "Mission Impossible !? On the Harmonization of National Allocation Plans under the EU Emissions Trading Directive," Journal of Regulatory Economics, Springer, vol. 27(1), pages 81-94, September.
  19. Common,Michael & Stagl,Sigrid, 2005. "Ecological Economics," Cambridge Books, Cambridge University Press, number 9780521816458, December.
  20. Löschel, Andreas & Lange, Andreas & Hoffmann, Tim & Böhringer, Christoph & Moslener, Ulf, 2004. "Assessing Emission Allocation in Europe: An Interactive Simulation Approach," ZEW Discussion Papers 04-40, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  21. Bovenberg, A.L., 1995. "Environmental taxation and employment," Other publications TiSEM db57f00b-741a-483d-a01b-6, Tilburg University, School of Economics and Management.
  22. Böhringer, Christoph, 2002. "Environmental tax differentiation between industries and households - implications for efficiency and employment: a multi-sector intertemporal CGE analysis for Germany," ZEW Discussion Papers 02-08, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  23. Lawrence Goulder, 1995. "Environmental taxation and the double dividend: A reader's guide," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 2(2), pages 157-183, August.
  24. Kaiser, Kai & Schulze, Günther G., 2003. "International Competition and Environmental Expenditures: Empirical Evidence from Indonesian Manufacturing Plants," HWWA Discussion Papers 222, Hamburg Institute of International Economics (HWWA).
  25. Böhringer, Christoph & Koschel, Henrike & Moslener, Ulf, 2006. "Efficiency Losses from Overlapping Economic Instruments in European Carbon Emissions Regulation," ZEW Discussion Papers 06-18, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  26. Revesz, Richard L. & Stavins, Robert N., 2007. "Environmental Law," Handbook of Law and Economics, Elsevier.
  27. Michael E. Porter & Claas van der Linde, 1995. "Toward a New Conception of the Environment-Competitiveness Relationship," Journal of Economic Perspectives, American Economic Association, vol. 9(4), pages 97-118, Fall.
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