Title: COSTS AND BENEFITS OF REDUCING THE EU’S GREENHOUSE GAS EMISSIONS BY 30% IN 2020
Authors: KLAASSEN GerNILL JanVAN IERLAND TomSAVEYN BertSTEFAAN Vergote
Citation: Review of Business and Economic Literature vol. 57 no. 2 p. 157-178
Publisher: Intersentia
Publication Year: 2012
JRC N°: JRC75160
URI: http://publications.jrc.ec.europa.eu/repository/handle/JRC75160
Type: Articles in periodicals and books
Abstract: The original assessment of the EU’s climate and energy package estimated that the cost would be between 0.45% and 0.61% of GDP in 2020 in order to achieve a 20% GHG reduction and a 20% renewables target. Th is paper will revisit the impacts of this climate and energy package. It will discuss a possible increase from 20% to 30% of the GHG reduction target due to recent developments such as the economic crisis, and the outcome of the international climate negotiations. Th e economic crisis will lower the direct costs needed to achieve the EU’s targets to 0.32% of GDP. Th is will probably increase with a further 0.22% of GDP in case of an escalation to a 30% GHG reduction scenario and including the use of international credits and banked allowances of up to 5% of this reduction. A step up to 30% GHG reductions with limited fl exibility through the use of international credits, and taking into account the potential outcome of the Copenhagen accord, would result in small employment impacts. Th ese could be positive if auctioning and carbon taxation are introduced that recycle the revenue to lower labour costs. A 30% reduction would also lower air pollution control costs by €3 to 5 billion. Th e eff ect on health benefi ts could be €4 to 17 billion higher.
JRC Directorate:Growth and Innovation

Files in This Item:
There are no files associated with this item.


Items in repository are protected by copyright, with all rights reserved, unless otherwise indicated.