Air Pollution Policy in Europe: Quantifying the Interaction with Greenhouse Gases and Climate Change Policies

An analysis of several variants of EU’s air pollution policies for the year 2020 shows that that carbon prices will fall, but not more than 33%, although they could drop to zero when the EU agrees on a more stringent air pollution policy. This follows from a study carried out by the CPB Netherlands Bureau for Economic Policy Analysis and the PBL Netherlands Environmental Assessment Agency.

In this study the Computable General Equilibrium Model called WorldScan is used to analyse interactions between European air pollution policies and policies aimed at addressing climate change. WorldScan incorporates the emissions of both greenhouse gases (CO2, N2O and CH4) and air pollutants (SO2, NOx, NH3 and PM2.5). WorldScan has been extended with equations that enable the simulation of end-of-pipe measures that remove pollutants without affecting the emission-producing activity itself.

Air pollution policy will depend on end-of-pipe controls for not more than 50%, thus also at least 50% of the required emission reduction will come from changes in the use of energy through efficiency improvements, fuel switching and other structural changes in the economy. Greenhouse gas emissions thereby decrease.

PBL Working Paper 7

Authors

Johannes Bollen (CPB), Corjan Brink (PBL)

Specifications

Publication title
Air Pollution Policy in Europe: Quantifying the Interaction with Greenhouse Gases and Climate Change Policies
Publication date
3 October 2012
Publication type
Publicatie
Publication language
Engels
Product number
473