Energy Market Projections and Differentiated Carbon Abatement in the European Union

31 Pages Posted: 29 Apr 2003

See all articles by Christoph Böhringer

Christoph Böhringer

University of Oldenburg - Economic Policy; Centre for European Economic Research (ZEW)

Jesper Jensen

TECA Training ApS

Thomas F. Rutherford

Centre for Energy Policy and Economics

Date Written: May 15, 1999

Abstract

We analyze the economic effects of the differentiated targets for carbon abatement in six European Union member states. Our recursively-dynamic model includes a detailed representation of trade and energy consumption and incorporates optimistic projections for future energy markets provided by the European Commission as the Business-as-usual scenario. In the base case we find that the EU implementation of the Kyoto Protocol implies low overall costs and a relatively even cost distribution across member states. We also show that a less optimistic development in energy efficiency implies higher costs in all countries, especially in those with high abatement costs. Finally, we find that uniform abatement targets increase overall costs marginally but changes the cost distribution significantly, holding total EU emissions constant.

Suggested Citation

Bohringer, Christoph and Jensen, Jesper and Rutherford, Thomas F., Energy Market Projections and Differentiated Carbon Abatement in the European Union (May 15, 1999). ZEW Discussion Paper No. 99-11, Available at SSRN: https://ssrn.com/abstract=376040 or http://dx.doi.org/10.2139/ssrn.376040

Christoph Bohringer (Contact Author)

University of Oldenburg - Economic Policy ( email )

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany
+49 6211235200 (Phone)
+49 6211235226 (Fax)

Jesper Jensen

TECA Training ApS ( email )

Mosevej 55
Hørsholm, 2970
Denmark
+45 24 20 50 00 (Phone)

HOME PAGE: http://www.tecatraining.dk

Thomas F. Rutherford

Centre for Energy Policy and Economics ( email )

ETH-Zentrum
Zurich, CH-8092
United States
+41 (0)44/632 6359 (Phone)
+41 (0)44/632 1622 (Fax)

HOME PAGE: http://www.cepe.ethz.ch/

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