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Report on Energy and Climate Policy in Europe

The Economics of Decarbonization

RECIPE (Report on Energy and Climate Policy in Europe ) outlines roadmaps towards a low-carbon world economy. Three structurally different energy-economy models were used to explore possible future development paths under a range of different assumptions about the nature of the low-carbon transition. The report shows that stabilizing atmospheric CO2 concentrations at 450 ppm is technically feasible and economically affordable. For this target, discounted welfare losses range between 0.1 % and 1.4 % of the global GDP relative to baseline levels. More ambitious climate policy aiming at CO2 stabilization at 410 ppm improves the chance of limiting global warming to no more than 2°C above pre-industrial levels. Here, the costs lie in the range of 0.7 to 4 %.

Pdf Download of RECIPE (8.5 MB): Report on Energy and Climate Policy in Europe

The report discusses the following issues in details:

  • The challenge of climate stabilization
  • Establishing a price on carbon
  • The role of technologies
  • The road ahead for economic sectors in Europe
  • Recipe for the low-carbon transition

Source: Source: PIK