The Effects of a Sudden Co2 Reduction in Spain

University of Vigo Working Paper No. 04-08

30 Pages Posted: 29 Dec 2004

See all articles by Xavier Labandeira

Xavier Labandeira

University of Vigo - Faculty of Economics and Business

Miguel Rodríguez Méndez

University of Vigo - Dept. Applied Economics

Date Written: September 2004

Abstract

Spanish emissions of carbon dioxide have grown by more than 40% in 2004 with respect to 1990. This is not compatible with the EU allocation of Kyoto-mandated CO2 reduction, even taking into account that Spanish emissions are allowed to rise by 15% in 2010. The reasons for this situation stem from a combination of economic growth and an inefficient energy domain, coupled with a total absence of climate change policies. In this paper, we use a static general equilibrium model to assess the effects of a sudden and intense (i.e., with a limited time to carry out significant abatement) CO2 reduction by the Spanish economy. Our results show that the costs of immediate and medium-size reductions are not significant in the short run and could lead to the attaining of the EU agreed emissions level for Spain. However, delaying such action means that the degree of Spanish CO2 emission reduction is much higher and that economic costs are far more important.

Keywords: Climate, markets, Kyoto

JEL Classification: D58, Q28

Suggested Citation

Labandeira, Xavier and Rodríguez Méndez, Miguel, The Effects of a Sudden Co2 Reduction in Spain (September 2004). University of Vigo Working Paper No. 04-08, Available at SSRN: https://ssrn.com/abstract=634003 or http://dx.doi.org/10.2139/ssrn.634003

Xavier Labandeira (Contact Author)

University of Vigo - Faculty of Economics and Business ( email )

As Lagoas Marcosende s/n
Vigo, Galiza E36310
Spain

Miguel Rodríguez Méndez

University of Vigo - Dept. Applied Economics ( email )

Facultade Empresariais e Turismo
Ourense, Ourense E-32004
Spain
+34 9 88368760 (Phone)
+34 9 8681 2401 (Fax)

HOME PAGE: http://webs.uvigo.es/miguel.r/

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
112
Abstract Views
1,244
Rank
441,712
PlumX Metrics