Cost-efficient climate policies for interdependent and uncertain carbon pools

Katarina Elofsson and Ing-Marie Gren ()
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Ing-Marie Gren: Department of Economics, Swedish University of Agricultural Sciences, Postal: Department of Economics, Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden

No 2014:7, Working Paper Series from Swedish University of Agricultural Sciences, Department Economics

Abstract: The purpose of this paper is to investigate policy instruments for interdependent carbon pools and how they can be applied in the EU climate policy to 2050. Cost-effective policy instruments for forest products which are adjusted for the impact on carbon pools are identified. A numerical, dynamic, chance-constrained model including the EU-27 countries shows that inclusion of only one forest carbon pool can reduce costs and increase emission reductions. Results also suggest that decentralized policy instruments for both carbon pools are less costly than uniform instruments at the EU level.

Keywords: EU; climate policy; carbon sequestration; bioenergy; timber; policy instruments. (search for similar items in EconPapers)
JEL-codes: Q23 Q28 Q48 Q54 (search for similar items in EconPapers)
Pages: 40 pages
Date: 2014-11-06
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Citations: View citations in EconPapers (1)

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