What would be the effects on the european union economy of new policies to cut co 2 emission
Download
1 / 35

What would be the effects on the European Union economy of new policies to cut CO 2 emission? - PowerPoint PPT Presentation


  • 74 Views
  • Uploaded on

What would be the effects on the European Union economy of new policies to cut CO 2 emission?. Mathias Mortensen Santiago Nuñez Silva Sean Stevens Wilfried Genest. Plan of presentation. Why does the EU need to cut CO 2 emissions? A case study of a CO 2 emission reduction policy Aims

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' What would be the effects on the European Union economy of new policies to cut CO 2 emission? ' - valentine-newman


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
What would be the effects on the european union economy of new policies to cut co 2 emission

What would be the effects on the European Union economy of new policies to cut CO2 emission?

Mathias Mortensen

Santiago Nuñez Silva

Sean Stevens

WilfriedGenest


Plan of presentation
Plan of presentation new policies to cut CO

  • Why does the EU need to cut CO2 emissions?

  • A case study of a CO2 emission reduction policy

    • Aims

    • Actions taken

    • Results and Costs

      c) The Copenhagen agreement

    • Aims

    • Policy proposed

    • Possible effects on the European economy

      d) Conclusion.


Why does the eu need to cut co 2 emissions

Why does the EU need to cut CO new policies to cut CO2 emissions?


Kyoto protocol
Kyoto protocol new policies to cut CO

  • Europe is supposed to reduce its annual CO2 emissions by 8% (compared to 1990) by 2012.

  • In 2007, the CO2 emissions were 5% smaller than in 1990.

  • In 2008, 6.2% smaller.

  • By 2012, 13% smaller (estimation from EEA).


Territory size in proportion to annual co 2 emissions

Territory size in proportion to annual CO new policies to cut CO2 emissions

13.5% of world annual CO2 emissions...


Cumulative carbon emissions 1900 1999
Cumulative Carbon Emissions 1900-1999 new policies to cut CO

…but 27.7% of CO2 emissions since 1900.



Aims reduce car co 2 emissions
Aims: reduce car new policies to cut CO CO2 emissions

  • 2007 reduction goals

    • Reduce car emissions to 120g/Km by 2012

  • Road Transport makes up for 20% of the total EU CO2 emissions

    • Passenger cars make up for 12%


Repartition by economic sectors
Repartition by economic sectors new policies to cut CO

  • Energy industries 1577.4 tonnes

  • Transport 968.8 tonnes

  • Industry 944.7 tonnes

  • Household 468.6 tonnes

  • Services 185.3 tonnes

  • Other 112.8 tonnes


Actions taken
Actions taken new policies to cut CO

Three main pillars

- Pressure on European, Japanese and Korean car makers to reduce CO2 from their new cars sold in the EU to 140g/km by 2008.

  • EU directives require the display of labels indicating CO2 emissions on new cars sold.

    - Fiscal policies (tax breaks and extra taxes)


Results and costs
Results and Costs new policies to cut CO

  • Cost the manufacturer 1700€ more per vehicle (due to higher investments).

  • This leads to an increase of 2450€ for consumers.

  • Target not yet achieved. Average emission is currently 140g/Km.


The copenhagen agreement new aims

The Copenhagen agreement: new aims. new policies to cut CO


To be filled when conference ends around the 18 th of dec
(to be filled when conference ends around the 18 new policies to cut COth of Dec.)


Policy proposed

Policy proposed new policies to cut CO

Subsidies, cap-and-trade, tariffs...


More subsidies
More subsidies? new policies to cut CO

Supply

Market for green energy industry

Supply + subsidies

P1

Average price of green energy (€)

P2

Demand

Q1

Q2

Quantity of green energy demanded/supplied (million of tons)


More cap and trade
More cap-and-trade? new policies to cut CO

  • Each industry is allowed to emit a certain level of CO2, these “permits to pollute” can then be sold to and bought from other companies.


A co 2 tariff
A CO new policies to cut CO2 tariff?

Market for industrial goods

Domestic supply

Average price of industrial goods (€)

Domestic demand

0

Quantity of industrial goods demanded/supplied (million of tons)


A co 2 tariff1
A CO new policies to cut CO2 tariff?

Market for industrial goods

Domestic supply

Average price of industrial goods (€)

World Supply

World Price

Imports

Domestic demand

0

Qsupplied

Qdemanded

Quantity of industrial goods demanded/supplied (million of tons)


A co 2 tariff2
A CO new policies to cut CO2 tariff?

Market for industrial goods

Domestic supply

World Price + CO2 tariff

Average price of industrial goods (€)

World Supply + tariff

World Price

World Supply

Imports

Domestic demand

0

Qsupplied

Qdemanded

Quantity of industrial goods demanded/supplied (million of tons)


A co 2 tariff3
A CO new policies to cut CO2 tariff?

Market for industrial goods

Domestic supply

World Price + CO2 tariff

Average price of industrial goods (€)

World Supply + tariff

New

(lower)

Imports

levels

Domestic demand

0

Qsupplied

Qdemanded

Quantity of industrial goods demanded/supplied (million of tons)


Disadvantages

Disadvantages? new policies to cut CO


Emissions trade agreement
Emissions trade agreement new policies to cut CO

  • (2005-2007) Too many permits were allocated making them worthless in values

  • (2007-2009) Burden moved to consumers. Recession led to lower CO2 emissions. Hence there were still too many permits on the allocation market.


Cost to europe
Cost to Europe new policies to cut CO

  • Unequal share of the environmental burdens between national energy suppliers (Western countries already have “greener” energy ).

  • Investments could reach as high as 1 trillion €.

  • Industrial products will increase in prices which will make them uncompetitive (main export of EU being machinery).

  • Could lead to inflation as prices of good will increase.


Higher standards
Higher standards? new policies to cut CO

Supply + rigid environmental standards

Market for machinery

Supply

P2

Average price of machinery (€)

P1

Demand

Q2

Q1

Quantity of machinery demanded/supplied (million of tons)


Weakening europe
Weakening Europe new policies to cut CO

  • Disagreements upon targets for Copenhagen’s conference- poorer EU countries do not want to pay for the poor countries outside the EU.

  • Europe could have to pay up to 15 billion euros a year to the LEDC’s.

  • A CO2 tariff could lead to a “trade war”.


Advantages

Advantages? new policies to cut CO


Economic advantages
Economic Advantages new policies to cut CO

  • Creation of new jobs

    • New industry would emerge to deal with further reductions in CO2 emission.

    • Already employs 300,000 people and has an annual turnover of 15 billion €.

  • Could lead to even lower prices for green energy

    • Improvements in technology and in the industrial processes.

    • Economies of scale (Green energy will cost less as more is produced)


Economic advantages1
Economic Advantages new policies to cut CO

  • Improvements in health

    • Lower the costs induced by the diseases caused by air pollution.

  • Help to prevent climate change and the economic damages associated to it.

  • Might decrease Europe dependency on foreign energy sources (Middle-East, Russia)


Conclusion
Conclusion new policies to cut CO

  • The EU has the potential of becoming the leading green economy.

  • Short-term costs outweighed by long-term profits.

  • A significant step forward in the fight against Global Warming.


Bibliography
Bibliography new policies to cut CO

Bendib Cartoon - Independent, uncensored, free-speech Political Cartoons. Web. 09 Dec. 2009. <http://www.bendib.com/>. <http://www.worldmapper.org/display.php?selected=299>

Egenhofer, Christian. The Eu Co2 Emissions Trading Scheme Taking Stock And Future Prospects. Washington, D.C.: Centre for European Policy Studies, 2007. Print.

"Energy: Statistics - European commission." EUROPA - European Commission - Homepage. Web. 09 Dec. 2009. <http://ec.europa.eu/energy/publications/statistics/statistics_en.htm>.

"Environnement : Réchauffement : l’Europe « atomise » les objectifs de Kyoto ! | Developpement Durable." Développement durable | Toute l'actualité sur l'environnement et le développement durable. Web. 09 Dec. 2009. <http://www.developpementdurable.com/environnement/2009/11/A3531/rechauffement-leurope-atomise-les-objectifs-de-kyoto.html>.

Pearce, David W. Blueprint for a green economy. London: Earthscan, 1989. Print.

"Recession benefits the climate - COP15 United Nations Climate Change Conference Copenhagen 2009." Home - COP15 United Nations Climate Change Conference Copenhagen 2009. Web. 09 Dec. 2009. <http://en.cop15.dk/news/view+news?newsid=1996>.

TOONPOOL Cartoons | Cartoons, Caricatures, Cartoon Art | Jokes and Humor. Web. 09 Dec. 2009. <http://www.toonpool.com/>.

"UK announces." IRELAND BUSINESS: FINFACTS IRISH FINANCE & BUSINESS PORTAL - mortgage Ireland, protection, life insurance, Financial Services, Investment, loans, Irish jobs Ireland, Dublin mortgages, Cork, Limerick, Galway, Share, Stock prices,. Web. 09 Dec. 2009. <http://www.finfacts.com/irelandbusinessnews/publish/article_1012056.shtml>.

Volk, Tyler. CO rising the world's greatest environmental challenge. Cambridge, MA: MIT, 2008. Print.

Worldmapper: The world as you've never seen it before. Web. 09 Dec. 2009. <http://www.worldmapper.org/display.php?selected=299>.

"GREEN PAPERA-European Strategy for Sustainable, Competitive and Secure Energy." European Enviromental Agency. A European Strategy for Sustainable, Competitive and Secure Energy, 8 Mar. 2006. Web. 9 Dec. 2009. <http://ec.europa.eu/energy/green-paper-energy/doc/2006_03_08_gp_document_en.pdf>.


ad