By Rainer Walz
The safety of the earth's surroundings calls for large efforts to minimize CO2 and different greenhouse fuel emissions. with a view to meet those objectives, governments have began to enforce weather guidelines which come with informational measures comparable to demonstration programmes in addition to financial tools similar to strength or emission taxes, emission buying and selling schemes, potency criteria and labelling structures for home equipment, and subsidies for low- or no-carbon applied sciences reminiscent of renewable power assets. This ebook offers a hugely policy-relevant assessment of the most probably macroeconomic results of weather swap coverage. It portrays the present debate and analyses the modelling result of current reports. The authors additionally current their very own empirical effects which give a contribution to remaining the space in regards to structural results and affects on technological switch of weather switch rules.
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Additional resources for The Economics of Climate Change Policies: Macroeconomic Effects, Structural Adjustments and Technological Change (Sustainability and Innovation)
The study set up by Prognos (2001) using an input-output model examines an energy policy action plan with a time horizon of 2020. In the context of the studies of DIW et al. (2001) and Frohn et al. (2003), the effects of the German eco-tax were analysed by Meyer et al. (2001, 2003), using the econometric Panta Rhei model, which was also used by Meyer et al. (1997). 5 cent/kWh for electricity) on top of the existing eco-tax and no special provisions for industry, compared with a reference case without any eco-tax.
3 Linking the models in the modelling approach unfavourable conditions favourable conditions 0,8 0,6 0,4 0,2 % 0 −0,2 −0,4 −0,6 consumption GDP price index employment Fig. , 1995) doubling of the GNP and the variables derived from this between 1990 and 2020. In the most unfavourable case, therefore, the CO2 abatement measures will not be financed by a reduction of the present consumption, but by doing without additional consumption to a small extent. By setting up the two economic variants with favourable and unfavourable conditions, it is possible to measure off ranges to include effect mechanisms to a varying extent.
It models the impacts of a climate policy on the national economy and, at the same time, derives the change in emissions on this aggregated level. To do so, so-called macroeconomic – Economy–Environment– Energy – Models (E3 models) are used, which essentially consist of either equilibrium or econometric models. The impacts on emissions are modelled completely detached from any concrete technology; the demand for the production factor energy is derived from an (aggregated) production function or from statistical correlations.