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Cost-efficient climate policies for interdependent and uncertain carbon pools

Author

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  • Elofsson, Katarina

    (Department of Economics, Swedish University of Agricultural Sciences)

  • Gren, Ing-Marie

    (Department of Economics, Swedish University of Agricultural Sciences)

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.

Suggested Citation

  • Elofsson, Katarina & Gren, Ing-Marie, 2014. "Cost-efficient climate policies for interdependent and uncertain carbon pools," Working Paper Series 2014:7, Swedish University of Agricultural Sciences, Department Economics.
    • Handle: RePEc:hhs:slueko:2014_007
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    More about this item

    Keywords

    EU; climate policy; carbon sequestration; bioenergy; timber; policy instruments.;
    All these keywords.

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q28 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Government Policy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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