A new report of the CECILIA2050 project analyses the impact of the current EU climate policy instruments on economic activity. The study uses the model GINFORS and the method of counterfactual simulation to analyse the economy-wide effects of current policy instrument mixes concerning economic instruments. The report is now available for download.
The study concludes that the current EU climate policy mix (including environmental tax reform (ETR), the EU emission trading system (ETS), and support schemes for renewables) have reduced CO2 emissions substantially: without these policies, European emissions would have been up to 13% higher than the observed levels. For GDP and employment effects, the analysis finds that European climate policies have probably had a beneficial effect, but have certainly not reduced them.