To contribute to the development of a conceptual framework in which the assessment of economic impacts of environmental protection measures imposed on the energy sector might become possible. The central question in this debate is whether environmental protection measures and technologies would lead to "environmental value added" efficiency, improved international competitiveness of the economy, stronger technological capabilities and improved quality of life.
This project will contribute to the development of a modelling framework which can be used for qualitative and quantitative assessment of policies in terms of long term system adjustments through feedback effects of innovations on competitiveness.
As a result of the analysis and modelling efforts, two reports were published. The first focuses on a study of the relationship between environmental policy, technological change, and competitiveness. It more precisely examines the effects of a carbon tax on technological change and EU competitiveness, based on four stylised facts of technology: a cumulative technological change, investment requirements for technology use, decreasing returns to RTD, and physical limits of efficiency in energy conversion. The second describes a non-linear dynamic model, ISIS (Inter-regional Socio-Industrial System), which was designed for the multi-regional economic simulations.
- SPRU and ECOSERVEIS will contribute to more systematic assessment of the environmental impact of current energy technologies, the potential of new technologies in this area and a review of energy RTD policies in the EC. This will provide the essential quantitative and qualitative data and information for the project.
- MERIT will focus on a number of methodological issues, associated with the dissemination of new technologies and their impact on international competitiveness. The HERMES model will be adapted to assess economic impact in terms of regional disparities.
- The SOLVAY INSTITUTE will add a geographical dimension to the analysis. The spatial aspect of environmental and development issues is significant for a number of reasons such as transportation requirements and conditions or aspects of social organization.
The contribution will consist of an analysis of spatial dynamics at the regional level and the links with energy and environmental protection policies.
Funding SchemeCSC - Cost-sharing contracts