Economic Modelling of Climate Change and Energy Policies

Edited by Carlos de Miguel, Associate Professor, Department of Economic Analysis, Xavier Labandeira, Professor of Economics and Baltasar Manzano, Associate Professor, Department of Economic Analysis, Universidade de Vigo, Spain

'Energy and environmental policies are typically addressed by different departments of government, and by different Directorates General in the case of the European Commission. The result is that policy frameworks, models and values develop in parallel and this in turn can result in diverging policy recommendations, and actions that are often not mutually consistent. An important integrative force in the European Union (EU) has been the creation of the EU emissions trading scheme which links the planet's scarcity of assimilative capacity for greenhouse gas emissions directly to the market that shapes decisions by producers and consumers of energy. It is necessary that the intellectual community be untrammelled by such territorial institutional or political considerations, and look at the choices and issues holistically with the focus on the well being of society as a whole. This book is an important contribution in this regard as it sets the stage, addresses the role and potential of emissions trading, and then focuses on more speculative arenas of policy and practice. As such is provides both policy practitioners and the intellectual community with plenty of substance to be informed by, and to argue about.'

• Contents:Preface1. Introduction and OverviewCarlos de Miguel, Xavier Labandeira and Baltasar ManzanoPART I: SOME FUNDAMENTALS2. Growth and Environment: On U-curves without U-turnsSjak Smulders3. Pollution Markets: Some Theory and EvidenceJuan P. MonteroPART II: THE EU EMISSION TRADING SYSTEM4. European Greenhouse Gas Emissions Trading: A System in TransitionJohn Reilly and Sergey Paltsev5. Harmonizing Emission Allocation. What are the Equity Consequences for the Sectors in and Outside the EU-trading SchemeTim Hoffmann, Andreas Löschel and Ulf Moslener6. The Effects of a Sudden CO2 Reduction in SpainXavier Labandeira and Miguel Rodríguez7. An Assessment of the Consequences of the European Emissions Trading Scheme for the Promotion of Renewable Electricity in SpainPedro Linares, Francisco J. Santos and Mariano Ventosa8. Efficient Verification of Firm Data under the EU Emissions Trading SystemFrauke EckermannPART III: ADVANCED ISSUES IN CLIMATE CHANGE AND ENERGY POLICIES9. Induced Technological Change and Slow Energy Capital Stock Turnover in an Optimal CO2 Abatement ModelMalte Schwoon and Richard S.J. Tol10. Indeterminacy and Optimal Environmental Public Policies in an Endogenous Growth ModelRafaela Pérez and Jesús Ruiz11. Energy-saving Technological Progress in a Vintage Capital ModelAgustín Pérez-Barahona and Benteng Zou12. Oil Shocks and the Business Cycle in EuropeCarlos de Miguel, Baltasar Manzano and José M. Martín-Moreno13. Energy Transitions and Policy Design in a GPT Setting with Cyclical Growth through Basic and Applied R&DAdriaan van Zon and Tobias KronenbergIndex