Transition towards a low carbon economy: A computable general equilibrium analysis for Poland |
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| Affiliation: | 1. Department of Economics and Center for Transnational Studies, University of Oldenburg, Germany;2. Department of Economics, University of Wisconsin, Madison, USA;1. School of Statistics, Shanxi University of Finance and Economics, Taiyuan, Shanxi 030006, PR China;2. Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, School of Management, Xiamen University, Fujian 361005, PR China;1. LSE IDEAS, London School of Economics and Political Science, London WC2A 2AZ, United Kingdom;2. School of Law and Government, Dublin City University, Glasnevin, Dublin 9, Ireland;1. French Economic Observatory (OFCE), 69 quai d’Orsay, 75340 Paris Cedex 07, France;2. Netherlands Organisation for Applied Scientific Research (TNO), Behavioral and Societal Sciences Strategy and Policy – Economics, Van Mourik Broekmanweg 6, Postbus 49, 2600 AA Delft, The Netherlands;3. National Institute of Ecology and Climate Change (INECC), Periferico Sur 5000. Col. Insurgentes Cuicuilco, Delegacion Coyoacan, 04530 Mexico City, Mexico;4. Agence Française de Développement (AFD), 5 Rue Roland Barthes, 75598 Paris Cedex 12, France;1. CSIRO Oceans & Atmosphere Flagship, Commonwealth Scientific and Industrial Research Organisation (CSIRO), Forestry House, Building 2, Wilf Crane Crescent, Yarralumla, ACT 2601, Australia;2. Institute for Supply Chain and Logistics, Victoria University, PO Box 14428, Melbourne, VIC 8001, Australia |
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| Abstract: | In the transition to sustainable economic structures the European Union assumes a leading role with its climate and energy package which sets ambitious greenhouse gas emission reduction targets by 2020. Among EU Member States, Poland with its heavy energy system reliance on coal is particularly worried on the pending trade-offs between emission regulation and economic growth. In our computable general equilibrium analysis of the EU climate and energy package we show that economic adjustment cost for Poland hinge crucially on restrictions to where-flexibility of emission abatement, revenue recycling, and technological options in the power system. We conclude that more comprehensive flexibility provisions at the EU level and a diligent policy implementation at the national level could achieve the transition towards a low carbon economy at little cost thereby broadening societal support. |
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