Scandinavian Working Papers in Economics
Working Paper Series,
Swedish University of Agricultural Sciences, Department Economics
No 2014:7: Cost-efficient climate policies for interdependent and uncertain carbon pools
Katarina Elofsson () and Ing-Marie Gren ()
Additional contact information
Katarina Elofsson: Department of Economics, Swedish University of Agricultural Sciences, Postal: Department of Economics, Box 7013, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden
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
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.
40 pages, November 6, 2014
Full text files
elofsson_k_140926.pdf
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