Climate change policy and European competitiveness

However, at least two conditions must be met. First, a country must be able to out source the reductions of freenhouse gas emissions, for example through an international system of tradeable permits. In this way cheap options in the former Eastern Bloc countries are exploited. Second, sectors must face the same price for emissions reductions. If the burden on one sector is relieved and on other sector intensified, the macro economic costs will increase. These conditions are especially important for the Netherlands. The reason is that the Netherlands has specialised in energy-intensive sectors (chemicals and transport) and already uses relatively much natural gas.

The study provides a qualitative as well s a quantitative review of the consequences of climate change policies for (specific sectors in) European countries, among which the Neherlands. We have followed a two-track research strategy. First, we review the theoretical and emperical leterature that addresses the impact of more stringent environmental policies on exports and location choices. Second, we quantify the effects of climate change policy on national income and sectoral employment with WorldScan, a dynamic applied general equilibrium model.

This publication is in Dutch.