A dynamic assessment of instrument interaction and timing alternatives in the EU low-carbon policy mix design
Valeria Costantini (),
Elena Paglialunga () and
Energy Policy, 2018, vol. 120, issue C, 73-84
The European Union low-carbon strategy includes a range of complementary policies. Potential interactions between instruments and different timing of their implementation can influence the cost and likelihood of achieving the targets. We test the interactions between the three main pillars of the European Union strategy through a dynamic Computable General Equilibrium model (GDynEP) with a time horizon of 2050. Main results are: i) going for the unilateral European Union carbon mitigation target without any complementary technological policy will produce large economic losses; ii) by investing in clean energy technologies (energy efficiency and renewable energy) with a carbon tax revenue recycling mechanism, these losses will decrease substantially; iii) when complementary clean energy technology policies are implemented, the optimal timing of binding targets changes; iv) the higher the public support to clean energy technologies, the larger the economic gains in early adoption of challenging abatement targets.
Keywords: H210; O320; Q470; Q540; EU low-carbon strategy; Dynamic CGE model; GDynEP; Abatement optimal timing; Policy mix design; Clean energy technologies (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
Working Paper: A dynamic assessment of instrument interaction and timing alternatives in the EU low-carbon policy mix design (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:120:y:2018:i:c:p:73-84
Access Statistics for this article
Energy Policy is currently edited by N. France
More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().