A comprehensive socio-economic assessment of EU climate policy pathways

Matthias Weitzel, Toon Vandyck, Luis Rey Los Santos, Marie Tamba, Umed Temursho and Krzysztof Wojtowicz

Ecological Economics, 2023, vol. 204, issue PA

Abstract: The European Green Deal aims to put the EU on track towards climate neutrality by 2050. One of the key elements is a more stringent greenhouse gas emission reduction target of 55% below 1990 levels by 2030. We analyse the socio-economic consequences of alternative policy pathways to reach that target, either relying more on regulatory standards, on carbon pricing, or a mix of both. We develop a modelling framework that captures macro-economic and sectoral impacts and closely aligns economic and energy system modelling. We further decompose aggregate labour market outcomes into skill and occupation types, and downscale representative household results to micro-level household data to evaluate the distributional effects across income groups with heterogeneous expenditure patterns. By combining models and datasets, our framework enables incorporating a high degree of technological detail while revealing socio-economic aspects of the transition that may go unnoticed in coarse, aggregate assessments. In particular, our results highlight the heterogeneous impacts of climate policy across sectors, worker skill types and income groups, which may require particular attention in climate policy design and corresponding complementary measures to ensure a fair transition to a low-carbon economy.

Keywords: Climate policy; Model linking; Policy packages; European Union; Just transition (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0921800922003214
Full text for ScienceDirect subscribers only

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:eee:ecolec:v:204:y:2023:i:pa:s0921800922003214

DOI: 10.1016/j.ecolecon.2022.107660

Access Statistics for this article

Ecological Economics is currently edited by C. J. Cleveland

More articles in Ecological Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().