The EU Decarbonisation Roadmap 2050: What Way to Walk?

74 Pages Posted: 5 Sep 2012

See all articles by Michael Hübler

Michael Hübler

Leibniz Universität Hannover

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics

Date Written: 2012

Abstract

We carry out a detailed CGE (Computable General Equilibrium) analysis of the EU Decarbonisation Roadmap 2050 on a macroeconomic and on a sectoral level. Herein, we study a Reference scenario that implements existing EU policies as well as 3 unilateral and 3 global climate action scenarios. We identify global climate action with international emissions trading and the ful l equalization of CO2 prices across all (EU) sectors as a reasonable policy option to avoid additional costs of the Decarbonisation Roadmap to a large extent. This policy option may include CDM (Clean Development Mechanism in the sense of ‘where’-flexibility) in an extended form if there are countries without emissions caps. Moreover, we identify diverse sectoral effects in terms of output, investment, emissions and international competitiveness. We conclude that the successful realization of the EU Decarbonisation Roadmap probably requires a wise and joint consideration of technology, policy design and sectoral aspects.

Keywords: EU, Decarbonisation Roadmap, Copenhagen Pledges, post Kyoto, energy-intensive sectors, competitiveness, leakage

JEL Classification: C68, F18, Q43, Q54

Suggested Citation

Hübler, Michael and Löschel, Andreas, The EU Decarbonisation Roadmap 2050: What Way to Walk? (2012). ZEW - Centre for European Economic Research Discussion Paper No. 12-055, Available at SSRN: https://ssrn.com/abstract=2141955 or http://dx.doi.org/10.2139/ssrn.2141955

Michael Hübler (Contact Author)

Leibniz Universität Hannover ( email )

Institute f. Environm. Economics and World Trade
Koenigsworther Platz 1
30167 Hannover, DE 30167
Germany

Andreas Löschel

University of Muenster - Chair of Microeconomics, esp. Energy and Resource Economics ( email )

Universitätsstr. 14-16
48143 Munster
Germany

HOME PAGE: http://www.wiwi.uni-muenster.de/eroe

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