EconPapers    
Economics at your fingertips  
 

Costs and Benefits of Reducing the EU’s Greenhouse Gas Emissions by 30% in 2020

G. Klaassen, J. Nill, T. Van Ierland, Bert Saveyn and S. Vergote

Review of Business and Economic Literature, 2012, vol. 57, issue 2, 157-179

Abstract: The original assessment of the EU’s climate and energy package estimated that the cost would be between 0.45% and 0.61% of GDP in 2020 in order to achieve a 20% GHG reduction and a 20% renewables target. This paper will revisit the impacts of this climate and energy package. It will discuss a possible increase from 20% to 30% of the GHG reduction target due to recent developments such as the economic crisis, and the outcome of the international climate negotiations. The economic crisis will lower the direct costs needed to achieve the EU’s targets to 0.32% of GDP. This will probably increase with a further 0.22% of GDP in case of an escalation to a 30% GHG reduction scenario and including the use of international credits and banked allowances of up to 5% of this reduction. A step up to 30% GHG reductions with limited fl exibility through the use of international credits, and taking into account the potential outcome of the Copenhagen accord, would result in small employment impacts. These could be positive if auctioning and carbon taxation are introduced that recycle the revenue to lower labour costs. A 30% reduction would also lower air pollution control costs by €3 to 5 billion. The effect on health benefits could be €4 to 17 billion higher.

Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sen:rebelj:v:57:i:2:y:2012:p:157-179

Access Statistics for this article

Review of Business and Economic Literature is currently edited by Hans Kluwer

More articles in Review of Business and Economic Literature from Intersentia
Bibliographic data for series maintained by Petra Van den Bempt ( this e-mail address is bad, please contact ).

 
Page updated 2022-08-31
Handle: RePEc:sen:rebelj:v:57:i:2:y:2012:p:157-179