Achieving 60% emission reductions by 2030
Assessment of policy options
Authors: Hector Pollitt (firstname.lastname@example.org) (Cambridge Econometrics)
and Unnada Chewpreecha (email@example.com) (Cambridge Econometrics)
Objectives of the study
This short report by Cambridge Econometrics analyses impacts of increased climate action in the EU27 using a macroeconomic model. The key questions are:
• Is an increase to a 60% GHG reduction target possible?
• What could be key policy elements?
• What would be the economic and employment effects of meeting this target?
1. HOW THE RESEARCH WAS CARRIED OUT
A macro-econometric model, E3ME is used to provide answers to the above questions. E3ME is a global E3 (Energy-Environment-Economy) model that is frequently used for the assessment of climate and energy policy. Recent E3ME applications include modelling contribution to the Stepping up Europe’s 2030 climate ambition Impact Assessment (55% target) for the European Commission, Halfway There: Existing policies put Europe on track for emission cuts of at least 50% by 2030 report for EMBER Climate, and analysis of the China Net Zero target.
The key distinction of the E3ME model is its econometric approach. The model can fully assess both short and long-term impacts and is not limited by many of the restrictive assumptions common to Computable General Equilibrium (CGE) models. In practice, this means that stepping up the ambition level of EU climate policies will not by assumption result in additional burden to the economy. Instead, the measures can be assessed across relevant sectors, reflecting policy-driven access to financial resources. Further information about E3ME is given in the final section of this document.
- Read the full report (pdf)