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REEEM-D3.3b_Policy Brief - Macroeconomic and distributional impacts of decarbonisation pathways

REEEM Project

This policy brief summarizes the insights gained from a thorough scenario analysis of the impacts of different decarbonisation pathways on the economy, with a special focus on EU-28 countries and different income groups. Five scenarios, each representing a specific decarbonisation pathway and implying different policy instruments to reach the respective emission reduction target are estimated with a computable general equilibrium model with a special emphasis on the energy system. Results for macroeconomic variables, such as development of economic growth, household income devlopment and consumption patterns are reported. The economic impacts of pursuing different reduction targets are analysed and main challenges to ensure economic growth are discussed.

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