Economic impacts of EU clean air policies assessed in a CGE framework

Zoi Vrontisi (), Jan Abrell, Frederik Neuwahl, Bert Saveyn and Fabian Wagner

Environmental Science & Policy, 2016, vol. 55, issue P1, 54-64

Abstract: This paper assesses the macroeconomic and sectoral impacts of the “Clean Air Policy Package” proposed by the European Commission in December 2013. The analysis incorporates both the expenditures necessary to implement the policy by 2030 and the resulting positive feedback effects on human health and crop production. A decomposition analysis identifies the important drivers of the macroeconomic impacts. We show that while expenditure on pollution abatement is a cost for the abating sectors, it also generates an increased demand for the sectors that produce the goods required for pollution abatement. Moreover, we find that positive feedback effects, particularly those related to health can offset the resource costs associated to the clean air policy and result in positive macroeconomic impacts for the economy of the European Union.

JEL-codes: C68 Q52 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1462901115300307
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:enscpo:v:55:y:2016:i:p1:p:54-64

DOI: 10.1016/j.envsci.2015.07.004

Access Statistics for this article

Environmental Science & Policy is currently edited by M. Beniston

More articles in Environmental Science & Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().