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France's Environmental Policies: Internalising Global and Local Externalities

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  • Balázs Égert

Abstract

The authorities have a very ambitious environmental-policy agenda, aimed chiefly at cutting greenhouse gas (GHG) emissions but also at dealing with local air and water pollution, waste management and the conservation of biodiversity. The laws that followed the Grenelle de l?environnement encompass policy measures in energy generation, manufacturing, transport, waste management, construction and agriculture to encourage a transition towards a low-carbon economy. The government is committed to an ambitious GHG reduction objective of 75% to be achieved by 2050. This paper evaluates its policies in terms of cost effectiveness, with a special emphasis on: how to impose a unique carbon price in the aftermath of the rejection of the carbon tax by the Constitutional Council; the challenges relating to renewable and nuclear electricity generation; the ways to reduce carbon intensity in the residential and transport sectors; how to improve waste management; and whether external costs related to the use of fertilisers and pesticides are properly accounted for in water management. Whereas considerable progress has been made to “green” the economy, an important challenge that remains is to internalise global and local externalities in all sectors of the economy so as to increase the cost-effectiveness of environmental policies.

Suggested Citation

  • Balázs Égert, 2011. "France's Environmental Policies: Internalising Global and Local Externalities," OECD Economics Department Working Papers 859, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:859-en
    DOI: 10.1787/5kgdpn0n9d8v-en
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    References listed on IDEAS

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    Cited by:

    1. World Bank, 2014. "Leveling the Field for Renewables : Mexico's New Policy Framework for Incorporating External Costs of Electricity Generation," World Bank Publications - Reports 20061, The World Bank Group.

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    More about this item

    Keywords

    abatement cost; carbon price; environmental policies; GHG emissions; global warming; negative externalities; nuclear power; renewables; waste management; water pollution;
    All these keywords.

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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