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


Dannenberg, Astrid ; Mennel, Tim ; Moslener, Ulf


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URL: http://ub-madoc.bib.uni-mannheim.de/1499
URN: urn:nbn:de:bsz:180-madoc-14998
Document Type: Working paper
Year of publication: 2007
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: Q48 Q43 Q21 Q28 Q41 ,
Subject headings (SWD): Umweltökonomie , Energiemarkt , Makroökonomie , Kosten , Europa
Keywords (English): Environmental regulation , energy market , macroeconomic costs
Abstract: 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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