This study offers insights into the design of economically efficient policies to curb carbon dioxide (CO2) emissions in Switzerland and in other European countries. The method uses a model of the energy system to investigate various options for taxation to reduce CO2 emissions. This study proposes as a first option the introduction of a 'hedging tax', that balances the risks of delaying measures to reduce cO2 emissions against those of premature reduction measures. It then assesses multinational policy options and considers as a second alternative international co-operation to curb joint cO2 emissions by means of a uniform tax applied in different countries. The simulation of such a strategy among three European countries (Switzerland, the Netherlands and Belgium) suggests that there may be significant benefits to be gained when CO2 reduction takes place in the countries where it is relatively cheap to do so.
|Number of pages||8|
|Publication status||Published - 1998|
ASJC Scopus subject areas
- Geography, Planning and Development
- Management, Monitoring, Policy and Law