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Computers & Operations Research
Article . 2016 . Peer-reviewed
License: Elsevier TDM
Data sources: Crossref
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Costs assessments of European environmental policies

Authors: BIGERNA, SIMONA; BOLLINO, Carlo Andrea; MICHELI, SILVIA;

Costs assessments of European environmental policies

Abstract

The evolution of energy production in the European Union (EU) is going through a big change in recent years: the incidence of traditional fuels is diminishing gradually for increasing renewable energy sources (RES), due to international concerns over climate change and for energy security reasons. The aim of this paper is to construct a simulation model that identifies and estimates costs that may arise for a community of negotiating countries from opportunistic behavior of some country when defining environmental policies. In this paper, the model is applied specifically to the new 2030 Framework for Climate and Energy Policies (COM(2014) 0015) (EC, 2014 11) on the promotion of RES that commits EU governments to a common goal to increase the share of RES in final consumption to 27% by 2030. Costs faced by EU countries to achieve the RES target are different due to their endowment heterogeneity, the availability of RES, the diffusion process of cost improvements and the different instruments to support the development of the RES technologies. Given the still undefined participation agreement to reach the new overall RES target by 2030, we want to assess the potential cost penalty induced by free riding behavior. This could stem from some EU country, which avoids complying with the RES Directive. Our policy simulation exercise shows that costs increase more than proportionally with the non-participating country size, measured with GDP and CO2 emissions. Furthermore, we provide a model to analytically assess the likelihood each EU country may have to behave opportunistically within the negotiation process of the new proposal on EU RES targets (COM(2014) 0015).

Country
Italy
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    7
    popularity
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    Average
    influence
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    impulse
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citations
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
7
Average
Average
Top 10%
Green