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Climate Policy and Green Transition – a CGE Analysis of the Finnish 2035 Carbon Neutrality Target

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  • Honkatukia, Juha

Abstract

The European Union aims to reduce CO2 emissions by at least 55 % by 2035 and to achieve carbon-neutrality by 2050. Many EU Member States have declared more stringent – ambitious – targets. Finland has adopted one of the most ambitious among them, with the aim of reaching carbon neutrality by 2035. The technology for getting there exists already but the policies supporting the target are only partly in place. This paper studies the economic measures that may be needed to facitlitate a Green Transition of this magnitude. The Finnish case may serve to highlight the vastness of the task – but also its feasibility. Our main finding is that, given the technology, the economic costs are likely to remain small and, at times, even negative.

Suggested Citation

  • Honkatukia, Juha, 2022. "Climate Policy and Green Transition – a CGE Analysis of the Finnish 2035 Carbon Neutrality Target," Conference papers 333406, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:333406
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    File URL: https://ageconsearch.umn.edu/record/333406/files/11162.pdf
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    Keywords

    International Relations/Trade; Environmental Economics and Policy;

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