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The Economics of Climate Change Policies: Macroeconomic by Rainer Walz

By Rainer Walz

The security of the earth's surroundings calls for immense efforts to minimize CO2 and different greenhouse gasoline emissions. in an effort to meet those pursuits, governments have began to enforce weather regulations which come with informational measures equivalent to demonstration programmes in addition to fiscal tools reminiscent of strength or emission taxes, emission buying and selling schemes, potency criteria and labelling platforms for home equipment, and subsidies for low- or no-carbon applied sciences corresponding to renewable power resources. This ebook offers a hugely policy-relevant assessment of the most probably macroeconomic results of weather swap coverage. It portrays the present debate and analyses the modelling result of current stories. The authors additionally current their very own empirical effects which give a contribution to final the space in regards to structural results and affects on technological switch of weather swap regulations.

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Additional info for The Economics of Climate Change Policies: Macroeconomic Effects, Structural Adjustments and Technological Change (Sustainability and Innovation)

Sample text

The value chain of fuels production has low labour intensity, followed by the value chain of conventional electricity production. The 64 These results are based on calculations performed with the international ISIS model which is based on the I/O-tables for various European countries. The author thanks his colleague Philipp Seydel from ISI for performing the model runs. 28 2 Effects of Climate Policy on the Economy: A Theoretical Perspective jobs/million € 30 25 20 Germany 15 France 10 Italy 5 pt io n /g as co ns um ric ity fu el s el ec t en t eq ui pm ag ric ul tu re 0 Fig.

Direct cost changes can be accounted for by translating them into compensating demand effects. Thus, if a climate policy leads to additional effects, this has to be modelled by reducing the demand for other goods in order to balance the cost increase. 13 Jochem (1997a, p. 692). Due to rising productivities, this effect can be estimated at about 70 jobs per PJ at present. g. construction; see Chap. 4), and second, lower imports due to the substitution of imported energy by mostly German-produced capital goods.

2001, 2003), using the econometric Panta Rhei model, which was also used by Meyer et al. (1997). 5 cent/kWh for electricity) on top of the existing eco-tax and no special provisions for industry, compared with a reference case without any eco-tax. The study of Walz et al. (1995) analyses the effect of a policy mix in order to reduce the CO2 emissions by 40% in 2020 compared to 1990. In contrast to the other studies, a combined bottom-up/top-down approach was used. Thus, for methodological reasons, this study is described in more detail in Sect.

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