[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v41y2012icp200-211.html
   My bibliography  Save this article

Europe’s climate goals and the electricity sector

Author

Listed:
  • Eskeland, Gunnar S.
  • Rive, Nathan A.
  • Mideksa, Torben K.
Abstract
EU's objective of attaining 20% reductions in greenhouse gas emissions by 2020 is analysed with a general equilibrium model detailing electricity generation technologies and capital vintaging. Consistent with theory and other analysts we find that the nonuniform treatment of emitting sectors in EU raises abatement costs – by a factor of two to three. Under cost effective emission reductions – a more comprehensive tradable cap—electricity generation abates more than its proportional share in emissions. The European economy abates by substitution towards natural gas, by energy efficiency improvements, and by reductions in emission intensive manufactures. Applied policies such as renewable support – and responses such as carbon leakage – hold down the prices for emission and electricity, thus also holds down incentives for energy efficiency and technological change. This leads to little preparation for the future and global mitigation.

Suggested Citation

  • Eskeland, Gunnar S. & Rive, Nathan A. & Mideksa, Torben K., 2012. "Europe’s climate goals and the electricity sector," Energy Policy, Elsevier, vol. 41(C), pages 200-211.
    • Handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:200-211
    DOI: 10.1016/j.enpol.2011.10.038
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421511008226
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2011.10.038?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Harstad, Bård & Eskeland, Gunnar S., 2010. "Trading for the future: Signaling in permit markets," Journal of Public Economics, Elsevier, vol. 94(9-10), pages 749-760, October.
    2. Manne, Alan & Mendelsohn, Robert & Richels, Richard, 1995. "MERGE : A model for evaluating regional and global effects of GHG reduction policies," Energy Policy, Elsevier, vol. 23(1), pages 17-34, January.
    3. Wing, Ian Sue, 2006. "The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technologies and the cost of limiting US CO2 emissions," Energy Policy, Elsevier, vol. 34(18), pages 3847-3869, December.
    4. Apostolos Serletis, 2012. "International Evidence on Sectoral Interfuel Substitution," World Scientific Book Chapters, in: Interfuel Substitution, chapter 3, pages 37-65, World Scientific Publishing Co. Pte. Ltd..
    5. Kristin Linnerud & Torben K. Mideksa & Gunnar S. Eskeland, 2011. "The Impact of Climate Change on Nuclear Power Supply," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 149-168.
    6. Vennemo, Haakon & Aunan, Kristin & Jianwu, He & Tao, Hu & Shantong, Li, 2009. "Benefits and costs to China of three different climate treaties," Resource and Energy Economics, Elsevier, vol. 31(3), pages 139-160, August.
    7. Albrecht, Johan & Francois, Delphine & Schoors, Koen, 2002. "A Shapley decomposition of carbon emissions without residuals," Energy Policy, Elsevier, vol. 30(9), pages 727-736, July.
    8. Grant R. McDermott & Øivind A. Nilse, 2014. "Electricity Prices, River Temperatures, and Cooling Water Scarcity," Land Economics, University of Wisconsin Press, vol. 90(1), pages 131-148.
    9. Curtis Carlson & Dallas Burtraw & Maureen Cropper & Karen L. Palmer, 2000. "Sulfur Dioxide Control by Electric Utilities: What Are the Gains from Trade?," Journal of Political Economy, University of Chicago Press, vol. 108(6), pages 1292-1326, December.
    10. Reynaldo Sandoval & Valerie J. Karplus & Sergey Paltsev & John M. Reilly, 2009. "Modelling Prospects for Hydrogen-powered Transportation Until 2100," Journal of Transport Economics and Policy, University of Bath, vol. 43(3), pages 291-316, September.
    11. Neufeldt,Henry, 2009. "Making Climate Change Work for Us," Cambridge Books, Cambridge University Press, number 9780521119412 edited by Hulme,Mike, September.
    12. Rypdal, Kristin & Rive, Nathan & Astrom, Stefan & Karvosenoja, Niko & Aunan, Kristin & Bak, Jesper L. & Kupiainen, Kaarle & Kukkonen, Jaakko, 2007. "Nordic air quality co-benefits from European post-2012 climate policies," Energy Policy, Elsevier, vol. 35(12), pages 6309-6322, December.
    13. Frei, Christoph W. & Haldi, Pierre-Andre & Sarlos, Gerard, 2003. "Dynamic formulation of a top-down and bottom-up merging energy policy model," Energy Policy, Elsevier, vol. 31(10), pages 1017-1031, August.
    14. Böhringer, Christoph & Rutherford, Thomos F., 2009. "Integrated assessment of energy policies: Decomposing top-down and bottom-up," Journal of Economic Dynamics and Control, Elsevier, vol. 33(9), pages 1648-1661, September.
    15. Böhringer, Christoph & Rutherford, Thomas F. & Tol, Richard S. J., 2009. "The EU 20/20/2020 Targets: An Overview of the EMF22 Assessment," Papers WP325, Economic and Social Research Institute (ESRI).
    16. Mideksa, Torben K. & Kallbekken, Steffen, 2010. "The impact of climate change on the electricity market: A review," Energy Policy, Elsevier, vol. 38(7), pages 3579-3585, July.
    17. Ottmar Edenhofer , Brigitte Knopf, Terry Barker, Lavinia Baumstark, Elie Bellevrat, Bertrand Chateau, Patrick Criqui, Morna Isaac, Alban Kitous, Socrates Kypreos, Marian Leimbach, Kai Lessmann, Bertra, 2010. "The Economics of Low Stabilization: Model Comparison of Mitigation Strategies and Costs," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    18. William D. Nordhaus, 2014. "The Perils of the Learning Model for Modeling Endogenous Technological Change," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    19. Rose, Steven K. & Lee, Huey-Lin, 2008. "Non-CO2 Greenhouse Gas Emissions Data for Climate Change Economic Analysis," Working papers 283461, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    20. Adam Rose & Noah Dormady, 2011. "A Meta-Analysis of the Economic Impacts of Climate Change Policy in the United States," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 143-166.
    21. Schafer, Andreas & Jacoby, Henry D., 2005. "Technology detail in a multisector CGE model: transport under climate policy," Energy Economics, Elsevier, vol. 27(1), pages 1-24, January.
    22. Sue Wing, Ian, 2008. "The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technology detail in a social accounting framework," Energy Economics, Elsevier, vol. 30(2), pages 547-573, March.
    23. Böhringer, Christoph & Rutherford, Thomas F., 2005. "Integrating Bottom-Up into Top-Down: A Mixed Complementarity Approach," ZEW Discussion Papers 05-28, ZEW - Leibniz Centre for European Economic Research.
    24. Steffen Kallbekken, 2005. "The cost of sectoral differentiation in the EU emissions trading scheme," Climate Policy, Taylor & Francis Journals, vol. 5(1), pages 47-60, January.
    25. Gunnar Eskeland & Torben Mideksa, 2010. "Electricity demand in a changing climate," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 15(8), pages 877-897, December.
    26. Rose, Steven & Lee, Huey-Lin, 2008. "Non-CO2 Greenhouse Gas Emissions Data for Climate Change Economic Analysis," GTAP Working Papers 2604, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    27. Lars Mathiesen, 1985. "Computational Experience in Solving Equilibrium Models by a Sequence of Linear Complementarity Problems," Operations Research, INFORMS, vol. 33(6), pages 1225-1250, December.
    28. Rive, Nathan, 2010. "Climate policy in Western Europe and avoided costs of air pollution control," Economic Modelling, Elsevier, vol. 27(1), pages 103-115, January.
    29. -, 2009. "The economics of climate change," Sede Subregional de la CEPAL para el Caribe (Estudios e Investigaciones) 38679, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Indre Siksnelyte & Edmundas Kazimieras Zavadskas, 2019. "Achievements of the European Union Countries in Seeking a Sustainable Electricity Sector," Energies, MDPI, vol. 12(12), pages 1-16, June.
    2. Keleş, S. & Bilgen, S., 2012. "Renewable energy sources in Turkey for climate change mitigation and energy sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 5199-5206.
    3. Martin Bohl & Philipp Kaufmann & Patrick Stephan, 2012. "From Hero to Zero: Evidence of Performance Reversal and Speculative Bubbles in German Renewable Energy Stocks," CQE Working Papers 2412, Center for Quantitative Economics (CQE), University of Muenster.
    4. Bohl, Martin T. & Kaufmann, Philipp & Stephan, Patrick M., 2013. "From hero to zero: Evidence of performance reversal and speculative bubbles in German renewable energy stocks," Energy Economics, Elsevier, vol. 37(C), pages 40-51.
    5. Eskeland, Gunnar S., 2013. "Leadership in Climate Policy: Is there a case for Early Unilateral Unconditional Emission Reductions?," Discussion Papers 2013/6, Norwegian School of Economics, Department of Business and Management Science.
    6. Yang Liu & Taoyuan Wei, 2016. "Linking the emissions trading schemes of Europe and China - Combining climate and energy policy instruments," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 21(2), pages 135-151, February.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fortes, Patrícia & Pereira, Rui & Pereira, Alfredo & Seixas, Júlia, 2014. "Integrated technological-economic modeling platform for energy and climate policy analysis," Energy, Elsevier, vol. 73(C), pages 716-730.
    2. André Sceia & Juan-Carlos Altamirano-Cabrera & Marc Vielle & Nicolas Weidmann, 2012. "Assessment of Acceptable Swiss post-2012 Climate Policies," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 148(II), pages 347-380, June.
    3. Milad Maralani & Milad Maralani & Basil Sharp & Golbon Zakeri, 2016. "The Potential Impact of Industrial Energy Savings on The New Zealand Economy," EcoMod2016 9308, EcoMod.
    4. Theodoridou, Ifigeneia & Papadopoulos, Agis M. & Hegger, Manfred, 2012. "A feasibility evaluation tool for sustainable cities – A case study for Greece," Energy Policy, Elsevier, vol. 44(C), pages 207-216.
    5. Helgesen, Per Ivar & Tomasgard, Asgeir, 2018. "From linking to integration of energy system models and computational general equilibrium models – Effects on equilibria and convergence," Energy, Elsevier, vol. 159(C), pages 1218-1233.
    6. Cai, Yiyong & Newth, David & Finnigan, John & Gunasekera, Don, 2015. "A hybrid energy-economy model for global integrated assessment of climate change, carbon mitigation and energy transformation," Applied Energy, Elsevier, vol. 148(C), pages 381-395.
    7. Halkos, George, 2014. "The Economics of Climate Change Policy: Critical review and future policy directions," MPRA Paper 56841, University Library of Munich, Germany.
    8. Edenhofer, Ottmar & Hirth, Lion & Knopf, Brigitte & Pahle, Michael & Schlömer, Steffen & Schmid, Eva & Ueckerdt, Falko, 2013. "On the economics of renewable energy sources," Energy Economics, Elsevier, vol. 40(S1), pages 12-23.
    9. Maryse Labriet & Laurent Drouet & Marc Vielle & Richard Loulou & Amit Kanudia & Alain Haurie, 2015. "Assessment of the Effectiveness of Global Climate Policies Using Coupled Bottom-up and Top-down Models," Working Papers 2015.23, Fondazione Eni Enrico Mattei.
    10. Rive, Nathan, 2010. "Climate policy in Western Europe and avoided costs of air pollution control," Economic Modelling, Elsevier, vol. 27(1), pages 103-115, January.
    11. Dai, Hancheng & Masui, Toshihiko & Matsuoka, Yuzuru & Fujimori, Shinichiro, 2011. "Assessment of China's climate commitment and non-fossil energy plan towards 2020 using hybrid AIM/CGE model," Energy Policy, Elsevier, vol. 39(5), pages 2875-2887, May.
    12. Sue Wing, Ian, 2008. "The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technology detail in a social accounting framework," Energy Economics, Elsevier, vol. 30(2), pages 547-573, March.
    13. Lanz, Bruno & Rausch, Sebastian, 2011. "General equilibrium, electricity generation technologies and the cost of carbon abatement: A structural sensitivity analysis," Energy Economics, Elsevier, vol. 33(5), pages 1035-1047, September.
    14. Julien Lefevre, 2018. "Modeling the Socioeconomic Impacts of the Adoption of a Carbon Pricing Instrument – Literature review," CIRED Working Papers hal-03128619, HAL.
    15. Pechan, Anna & Eisenack, Klaus, 2014. "The impact of heat waves on electricity spot markets," Energy Economics, Elsevier, vol. 43(C), pages 63-71.
    16. Stefan Nabernegg & Birgit Bednar-Friedl & Fabian Wagner & Thomas Schinko & Janusz Cofala & Yadira Mori Clement, 2017. "The Deployment of Low Carbon Technologies in Energy Intensive Industries: A Macroeconomic Analysis for Europe, China and India," Energies, MDPI, vol. 10(3), pages 1-26, March.
    17. van Ruijven, Bas J. & Weitzel, Matthias & den Elzen, Michel G.J. & Hof, Andries F. & van Vuuren, Detlef P. & Peterson, Sonja & Narita, Daiju, 2012. "Emission allowances and mitigation costs of China and India resulting from different effort-sharing approaches," Energy Policy, Elsevier, vol. 46(C), pages 116-134.
    18. Wing, Ian Sue, 2006. "The synthesis of bottom-up and top-down approaches to climate policy modeling: Electric power technologies and the cost of limiting US CO2 emissions," Energy Policy, Elsevier, vol. 34(18), pages 3847-3869, December.
    19. Gjorgiev, Blazhe & Garrison, Jared B. & Han, Xuejiao & Landis, Florian & van Nieuwkoop, Renger & Raycheva, Elena & Schwarz, Marius & Yan, Xuqian & Demiray, Turhan & Hug, Gabriela & Sansavini, Giovanni, 2022. "Nexus-e: A platform of interfaced high-resolution models for energy-economic assessments of future electricity systems," Applied Energy, Elsevier, vol. 307(C).
    20. Sarica, Kemal & Tyner, Wallace E., 2013. "Alternative policy impacts on US GHG emissions and energy security: A hybrid modeling approach," Energy Economics, Elsevier, vol. 40(C), pages 40-50.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:200-211. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.