Arbeitspapier
A public choice view on the climate and energy policy mix in the EU: How do the emissions trading scheme and support for renewable energies interact?
In this paper, we analyze the rationale for an energy policy mix when the European Emissions Trading scheme (ETS) is considered from a public choice perspective. That is, we argue that the economic textbook model of the ETS implausibly assumes 1) efficient policy design and 2) climate protection as the single objective of policy intervention. Contrary to these assumptions, we propose that the ETS originates from a political bargaining game within a context of multiple policy objectives. In particular, the emissions cap is negotiated between regulators and emitters with the emitters' abatement costs as crucial bargaining variable. This public choice view yields striking implications for an optimal policy mix comprising RES supporting policies. Whereas the textbook model implies that the ETS alone provides sufficient climate protection, our analysis suggests that support for renewable energies 1) contributes to a more effective ETS-design and 2) may even increase the overall efficiency of climate and energy policy if other externalities and policy objectives besides climate protection are considered. Thus, our analysis also shows that a public choice view not necessarily entails negative evaluations concerning efficiency and effectiveness of a policy mix.
- Language
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Englisch
- Bibliographic citation
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Series: UFZ Discussion Paper ; No. 5/2013
- Classification
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Wirtschaft
Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies
Alternative Energy Sources
Energy: Government Policy
Environmental Economics: Government Policy
- Event
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Geistige Schöpfung
- (who)
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Gawel, Erik
Strunz, Sebastian
Lehmann, Paul
- Event
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Veröffentlichung
- (who)
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Helmholtz-Zentrum für Umweltforschung (UFZ)
- (where)
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Leipzig
- (when)
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2013
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Gawel, Erik
- Strunz, Sebastian
- Lehmann, Paul
- Helmholtz-Zentrum für Umweltforschung (UFZ)
Time of origin
- 2013
Other Objects (12)
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A public choice view on the climate and energy policy mix in the EU: how do the emissions trading scheme and support for renewable energies interact?
Why should support schemes for renewable electricity complement the EU emissions trading scheme?
Die Förderung der erneuerbaren Energien nach der EEG-Reform 2014
Staatsprogramme gegen die Corona-Krise – eine Option für den Klimaschutz?
On the alleged need to strictly "Europeanize" the German Energiewende
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The political economy of renewable energy policies in Germany and the EU
The political economy of renewable energy policies in Germany and the EU
The German Energiewende under attack: Is there an irrational Sonderweg?
Polit-ökonomische Grenzen des Emissionshandels und ihre Implikationen für die klima- und energiepolitische Instrumentenwahl
Efficient public adaptation to climate change: An investigation of drivers and barriers from a Public Choice perspective
Wie viel Europa braucht die Energiewende?
A public choice view on the climate and energy policy mix in the EU: how do the emissions trading scheme and support for renewable energies interact?
Why should support schemes for renewable electricity complement the EU emissions trading scheme?
Die Förderung der erneuerbaren Energien nach der EEG-Reform 2014
Staatsprogramme gegen die Corona-Krise – eine Option für den Klimaschutz?
On the alleged need to strictly "Europeanize" the German Energiewende
On the alleged need to strictly "Europeanize" the German Energiewende
The political economy of renewable energy policies in Germany and the EU
The political economy of renewable energy policies in Germany and the EU
The German Energiewende under attack: Is there an irrational Sonderweg?
Polit-ökonomische Grenzen des Emissionshandels und ihre Implikationen für die klima- und energiepolitische Instrumentenwahl
Efficient public adaptation to climate change: An investigation of drivers and barriers from a Public Choice perspective