European environmental and energy policies are currently challenged by two mutually dependent issues: CO2 abatement and the completion of the Internal Market for energy. Both will lead to substantial structural changes in the energy supply industry and in the wider economy. The purpose of this book is to analyze the interaction between CO2 abatement, economic structural change and the completion of the European Internal Market. This involves not only significant general equilibrium effects, but also technological changes, especially in the electricity supply sector. The simulation results indicate that the effects of measures to reduce European CO2 emissions depend considerably on the structure of the electricity supply system.

Inhalt

1 Introduction.- 1.1 CO2 Abatement, Structural Change and the European Internal Market.- 1.2 Aims and Scope of the Study.- 1.3 Methodological Approach.- 1.4 Overview.- I: Models and Assumptions.- 2 LEAN.- 2.1 Overview.- 2.2 Market Clearance and Macro Closure.- 2.3 Foreign Trade and Final Demand.- 2.4 Factor Demand.- 2.5 Prices and Taxes.- 2.6 Capital Formation.- 2.7 Functional Forms.- 3 EIREM.- 3.1 Overview.- 3.2 Objective Function.- 3.3 Cost Equations.- 3.4 Demand Restrictions.- 3.5 Capacity Restrictions.- 3.6 Fuel Input and Generation Restrictions.- 3.7 Interregional Transmission Constraints.- 3.8 Environmental Taxes.- 4 NEWAGE.- 4.1 Overview.- 4.2 General Equilibrium and the Complementarity Format.- 4.3 Integration of Activity Analysis into AGE Models.- 4.4 Algebraic Summary.- 4.4.1 Exhaustion of Product Conditions.- 4.4.2 Market Clearance.- 4.4.3 Income and Aggregate Demand.- 4.4.4 Activity Analysis Representation of the Electricity Sector.- 5 Parametric Framework and Policy Scenarios.- 5.1 Parametric Framework.- 5.1.1 Regional, Sectoral and Technological Disaggregation.- 5.1.2 Benchmark Data and Elasticities for LEAN and NEWAGE.- 5.1.3 Characterization of Technologies in EIREM and NEWAGE.- 5.1.4 Exogenous Drivers.- 5.2 Initial Economic Situation and Scenario Definitions.- 5.2.1 Initial Situation.- 5.2.2 Policy Scenarios.- II: Simulation Results.- 6 Effects of Market Opening and National Energy Policies.- 6.1 Introduction.- 6.2 The Base Case.- 6.3 Internal Market for Electricity.- 6.4 Nuclear Phase-Out in Germany.- 6.5 Conclusions.- 7 Effects of Carbon/Energy Taxes.- 7.1 Introduction.- 7.2 European Carbon/Energy Tax.- 7.3 National Carbon/Energy Tax in Germany.- 7.4 Alternative Tax Recycling.- 7.5 Conclusions.- 8 Tradeable CO2 Permits.- 8.1 Introduction.- 8.2 Basic Considerations for Welfare Analysis.- 8.3 Empirical Results for Non-coordinated Emission Abatement.- 8.4 Empirical Results for Coordinated Emission Abatement.- 8.5 Conclusions.- III: Summary and Conclusions.- References.- Appendix A: Internal Market for Electricity - Detailed Results.- Appendix B: Nuclear Phase Out in Germany - Detailed Results.- Appendix C: European Carbon/Energy Tax - Detailed Results.- Appendix D: National Carbon/Energy Tax in Germany - Detailed Results.- Appendix E: European Carbon/Energy Tax under Alternative Tax Recycling - Detailed Results.