CO2 Abatement and Economic Structural Change in the European Internal Market [Paperback]

European environmental and energy policies are currently challenged by two mutually dependent issues: CO2 abatement and the completion of the Internal Market for energy. Both will lead to substantial structural changes in the energy supply industry and in the wider economy. The purpose of this book is to analyze the interaction between CO2 abatement, economic structural change and the completion of the European Internal Market. This involves not only significant general equilibrium effects, but also technological changes, especially in the electricity supply sector. The simulation results indicate that the effects of measures to reduce European CO2 emissions depend considerably on the structure of the electricity supply system.European environmental and energy policies are currently challenged by two mutually dependent issues: CO2 abatement and the completion of the Internal Market for energy. Both will lead to substantial structural changes in the energy supply industry and in the wider economy. The purpose of this book is to analyze the interaction between CO2 abatement, economic structural change and the completion of the European Internal Market. This involves not only significant general equilibrium effects, but also technological changes, especially in the electricity supply sector. The simulation results indicate that the effects of measures to reduce European CO2 emissions depend considerably on the structure of the electricity supply system.1 Introduction.- 1.1 CO2 Abatement, Structural Change and the European Internal Market.- 1.2 Aims and Scope of the Study.- 1.3 Methodological Approach.- 1.4 Overview.- I: Models and Assumptions.- 2 LEAN.- 2.1 Overview.- 2.2 Market Clearance and Macro Closure.- 2.3 Foreign Trade and Final Demand.- 2.4 Factor Demand.- 2.5 Prices and Taxes.- 2.6 Capital Formation.- 2.7 Functional Forms.- 3 EIREM.- 3.1 Overview.- 3.2 Objective Function.- 3.3 Cost Equations.- 3.4 Demand Restrictions.- 3.5 Capacity Restrictions.- 3.6 Fuel Inpulƒf