Keywords: climate technology strategy, competitive energy markets, GEM-E3, general equilibrium, partial equilibrium, POLES, pollution permits, PRIMES
Economic and energy system implications of the European CO2 mitigation strategy for 2010: a model-based analysis
Since the decision of the Council of Ministers of the EU Member States (3 March 1997) specifying a decrease of greenhouse gas emissions by 15% in 2010 compared with the 1990, there has been a widespread study of the appropriate policy instruments and the associated costs. The task of meeting the emissions reduction targets should not be underestimated. Reducing CO2 emissions for the EU as a whole over the next 15 years would amount to no less than breaking the historical link between economic growth and energy use. Especially in the short term the problem of stranded costs is important. This paper attempts a synthesis of results coming from several new-generation models developed recently, and examines the economic and energy system implications of both short-term policies and measures for emission reduction as well as long-term technology options.