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 %.
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