 Fossil fuels subsidy removal and the EU carbon neutrality policyAlessandro Antimiani, Valeria Costantini and Elena Paglialunga Energy Economics, 2023, vol. 119, issue C Abstract: The complexity of the EU carbon neutrality policy is addressed by evaluating the impacts of the interaction among different policy instruments. An energy-economic dynamic CGE model based on GTAP utilities is developed for simulating different policy scenarios starting from a business as usual case where the economic impacts related to the COVID-19 pandemic and recovery measures are included. The instruments tested as part of the EU climate strategy are the removal of fossil-fuel consumption subsidies, a carbon pricing mechanism and the public support to clean energy technologies. The modelling approach is based on a revenue recycling mechanism to finance clean energy technologies. We find that the simultaneous implementation of all instruments under the EU climate strategy including the removal of subsidies to fossil fuels and the reuse of revenues to foster the technological transition of the energy system is a win-win solution for a sustainable and decarbonised EU economy. Keywords: Clean energy technologies; Climate policy mix design; EU Green Deal; Fit for 55; Fossil-fuel consumption subsidy removal (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:119:y:2023:i:c:s0140988323000221 DOI: 10.1016/j.eneco.2023.106524 Access Statistics for this article Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant More articles in Energy Economics from Elsevier |
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