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Content archived on 2024-04-19

Energy - Technology - Environment - Competitiveness : Analysis and modelling of policy strategies

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The project provided an analysis and modelling of policy strategies relating to the complex relationships between energy policies, research and technological development (RTD), environmental issues, employment concerns, and industrial competitiveness. Specifically, it addressed the economic impact of environmental protection measures and the implications for policy of long-term system adjustments through feedback effects of innovations on competitiveness. The project contribution consisted of an analysis of spatial dynamics at the regional level and the links with energy and environmental protection policies. In order to obtain essential quantitative and qualitative data and information for the project, a systematic assessment was carried out of the environmental impacts of current energy technologies, the potential of new technologies in this area, and a review of energy RTD policies. At the same time, methodological issues associated with the dissemination of new technologies and their impact on international competitiveness were investigated. The HERMES model was then adapted, to assess the economic impacts in terms of regional disparities. Finally, the geographical dimension was added to the analysis. 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 European Union (EU) competitiveness, based on 4 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, Inter-regional Socio-Industrial System (ISIS ), which was designed for the multi-regional economic simulations The research performed in this project predicted that there is indeed 'double-dividend' of a carbon dioxide tax for both reducing carbon dioxide emissions and increasing employment.

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