Scandinavian Working Papers in Economics

CERE Working Papers,
CERE - the Center for Environmental and Resource Economics

No 2010:14: Unintentional Climate Policy: Swedish experiences of carbon dioxide emissions and economic growth 1950-2005

Magnus Lindmark () and Lars Fredrik Andersson ()
Additional contact information
Magnus Lindmark: CERE, Postal: CERE and dept. of Economic History, Umeå University, S-901 87 Umeå
Lars Fredrik Andersson: CERE, Postal: CERE and dept. of Economic History, Umeå University, S-901 87 Umeå

Abstract: This paper examines the development of carbon dioxide emissions in Sweden, especiallyn with a focus on the absolute reductions during the post-war period, during the 1970s and 1980s. The paper shows that the largest reductions were achieved before the introduction of an active climate policy in 1991. This was in turn the result of significant improvements in energy efficiency and energy conversion, while structural changes were considerably less important. One reason behind this decoupling process may be that the active energy policy put pressure on households and industries to conserve energy and to substitute from oil to electricity and biofuels. The process was substantially reinforced by the development of world oil prices in combination with the development of domestic electricity prices, where nuclear power seems to have played an important role.

Keywords: Sweden; climate policy; economic growth; carbon dioxide reduction; carbon tax

JEL-codes: N54

15 pages, December 7, 2010

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