Does climate policy make the EU economy more resilient to oil price rises? A CGE analysis

Maisonnave, Hélène; Pycroft, Jonathan; Saveyn, Bert; Cı́scar, Juan Carlos

doi:10.1016/j.enpol.2012.04.053

Cited by 24 publications

(8 citation statements)

References 17 publications

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Section: Literature Reviewmentioning

confidence: 95%

“…Climate policies, therefore, appear as a hedging strategy against the uncertainty on oil resources, in addition to their main aim of avoiding dangerous climate change. Similarly, Maisonnave et al (2012) conclude that unilateral EU climate policy oers a protection against oil price rise (measured by lower GDP losses inferred by an exogenous scenario of oil price rise in the case when climate policies are implemented than in the absence of climate policy).On the trade-os side, Kuik (2003) shows that there is a trade-o between economic eciency of climate policies and energy security for the EU.Other studies highlight synergies for some cases, and trade-os in others. For instance, Turton and Barreto (2006) conclude that stringent climate policies oer synergies with respect to security of oil supply (measured by the resource to consumption ratio), but trade-os with respect to security of gas supply.…”

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confidence: 98%

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Would Climate Policy Improve the European Energy Security?

et al. 2015

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International audienceEnergy security improvement is often presented as a co-benefit of climate policies. This paper evaluates this claim. It investigates whether climate policy would improve energy security, while accounting for the difficulties entailed by the many-faceted nature of the concept and the large uncertainties on the determinants of future energy systems. A multi-dimension analysis grid is used to capture the energy security concept, and a database of scenarios allows us to explore the uncertainty space. The results, focusing on Europe, reveal there is no unequivocal effect of climate policy on all the perspectives of energy security. Moreover, time significantly matters: the impact of climate policies is mixed in the short term and globally good in the medium term. In the long term, there is a risk of degradation of the energy security. Lastly, we examine the robustness of our results to uncertainties on drivers of economic growth, availability of fossil fuels and the potentials and low-carbon technologies, and find that they are sensitive mainly to fossil fuels availability, low carbon technologies in the energy sector and improvements in energy efficiency

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Section: Literature Reviewmentioning

confidence: 95%

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confidence: 98%

Would Climate Policy Improve the European Energy Security?

et al. 2015

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“…Kalafatis (2018) finds co-benefits in terms of overlaps with economic development from climate policy in a survey covering 287 cities in the US. Maisonnave, Pycroft, Saveyn, and Ciscar (2012) study a unilateral EU approach and show that GDP decreases more under rising oil prices in the absence of climate policy than in the presence of it, thereby illustrating macro-economic protection as a co-benefit. Besides strict economic effects, carbon management may foster co-benefits of an organizational nature.…”

Section: Improved Economic and Organizational Performancementioning

confidence: 98%

Climate policy co-benefits: a review

2020

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Concern over mitigation costs impedes the adoption of the climate policies needed to achieve agreed global warming targets. While costs are important to consider, so are benefits. However, the evidence for climate policy co-benefits, that is, the benefits in addition to avoided climate change costs, is commonly overlooked in policy-making. In many areas, the research is limited and not comprehensively synthesised. This article counters that problem and reviews 239 peer-reviewed articles, selected from 1,749 hits from a literature search covering 'co-benefits' and related terms. Aiming to aid policy-makers and to identify research gaps, we structure, describe, analyse and synthesize the rapidly expanding knowledge on climate policy co-benefits. Improved air quality is the co-benefit category dominating the literature, but studies covering a broad geographic range also focus on diet, physical activity, soil and water quality, biodiversity, economic performance, and energy security. In these areas, co-benefits are shown to be of substantial economic value, regarding air quality often of the same order of magnitude as mitigation costs, in some instances even larger. However, the share of studies quantifying or monetizing cobenefits is limited, and the empirical evidence is small, in particular for areas besides air quality and health. Furthermore, the knowledge is seldom used in policy-making, meaning that decision-making is often biased and overly concerned with costs, leading to suboptimal climate policies and goal failures. Evidently, more research is needed, as well as improved decision-making. Understanding and acting on climate policy co-benefits can promote policies that better mitigate climate change and improve overall welfare. Key policy insights. Climate policy co-benefits in well-researched fields such as air quality and health are large, often equalling or exceeding mitigation costs. . Despite their significance, co-benefits are seldom considered in decision-making, leading to biased policies and goal failures. . In several areas, such as diet and energy security, co-benefits are sparsely researched, but emerging evidence points to high values. . More research is needed, including on how to describe the total value of different co-benefits. . Improved processes, documentation requirements and criteria in decision-making are needed, in order to ensure that political decision-makers consider co-benefits. ARTICLE HISTORY

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“…The General Equilibrium Model for Energy–Economy–Environment interactions (GEM‐E3) is a computable general equilibrium model. The model has been developed as a multinational collaboration project, partly funded by the European Communities, DG Research, 5th Framework program and by national authorities, and further developments are continuously under way.…”

Section: Current Energy Modelsmentioning

confidence: 99%

Long‐term energy models: Principles, characteristics, focus, and limitations

Gargiulo

Gallachóir

2013

WIREs Energy & Environment

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There are many long-term energy models currently in use with different underlying principles, characteristics, inputs, and outputs. Over the past 30 years, considerable efforts have been made to develop new models, following different approaches that vary in terms of model starting point and on the type of questions they are designed to answer. These models focus on the period to 2050 and to 2100 and are used to build future energy scenarios to assess the impacts of policy decisions and to build a rich knowledge base for climate change and energy security policies. PET, TIAM, and MESSAGE (examples of energy system models) provide a range of technology detailed energy system configurations to deliver future energy service demands at least cost. By contrast, GEM-E3, GEMINI-E3 and, GTEM (examples of general equilibrium models) are also optimization models, but here the energy system is less detailed but the whole economy is modeled. Other models (e.g., POLES) simulate the future evolution of energy demand and supply and a number of models have been developed that include energy, but which focus on integrated assessment of the economy energy and climate response (e.g., FUND, GCAM, and MERGE). It is important for energy analysts to assess what type of model best suits the requirement and to recognize the limitations of the various models available. Significant work is required to improve linkages between models to harness respective strengths and major modeling gaps (agriculture, land use, and behavior) require a specific focus for future work.

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Does climate policy make the EU economy more resilient to oil price rises? A CGE analysis

Cited by 24 publications

References 17 publications

Would Climate Policy Improve the European Energy Security?

Would Climate Policy Improve the European Energy Security?

Climate policy co-benefits: a review

Long‐term energy models: Principles, characteristics, focus, and limitations

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