The costs of an emission reduction by 30% ?; Macro economic effects in 2020

Such an effort is consistent with the policy target of the European Union to limit the rise of the average world temperature compared to pre-industrialized level to 2 degrees Celsius. The economic consequences of such a climate policy may vary widely. In 2020 the loss to the Netherlands of such a strategy is assessed to be 0.8 percent of National Income, provided all countries will engage in the climate policy and efficient international emissions markets will be in place. However, if the developing countries do not join the abatement coalition, and only industrialized countries are engaged in climate policy, the costs to the Netherlands may rise to 4.8 percent of National Income. The costs also depend on economic growth in the underlying scenario. In a scenario with a global abatement coalition and moderate economic growth the costs will amount to 0.2 percent of National Income.