Energy and Climate Policy: Quantifying the Benefits of a European Approach

Mathias Mier

No 58, EconPol Policy Brief from ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Abstract: The European Emissions Trading System is a cornerstone of the EU climate policy and its development is set until 2030. However, it is unclear what will happen afterwards. This policy brief compares three different scenarios: Rapid Decarbonization, 2050 Climate Neutral and a Break scenario. The simulations quantify the total benefits of a joint European effort at EUR 248 billion between 2024 and 2050. In the worst-case scenario, total costs could reach EUR 8.629 trillion. Key Messages The European Union Emissions Trading System has considerable monetary and environmental advantages over national systems. I compare three different policy scenarios to examine the impact of joint European efforts beyond 2030: Rapid Decarbonization, 2050 Climate Neutrality, and a Break scenario. A common European Union approach leads to monetary advantages generated by lower electricity prices and reduced need for subsidies. The simulations quantify the total benefits for Europe over the period 2024–2050 at EUR 248 billion, for Germany at EUR 66 billion.

Date: 2024
New Economics Papers: this item is included in nep-eec, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.ifo.de/DocDL/EconPol-PolicyBrief_58_Energy-Climate-Policy.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ces:econpb:_58

Access Statistics for this paper

More papers in EconPol Policy Brief from ifo Institute - Leibniz Institute for Economic Research at the University of Munich Contact information at EDIRC.
Bibliographic data for series maintained by Klaus Wohlrabe ().