“The restriction of CO2 policies in Spain are terciarice the economy, ie, tending more toward a service economy. The share of industry and energy sector is reduced, and this is because there is a change in patterns of production and consumption due to the CO2 that will be priced, “explains Mikel González-Eguino SINC, study author and researcher BC3.
The study, published in the journal Economic Research also suggests that these policies promote a small change in consumption pattern. “The creation of a tax on CO2 emissions may cause a reduction, and to change habits related to the large consumption of energy,” says the expert.
The investigation follows a pattern of economic analysis called “general equilibrium”, to analyze the effects of global policy as the reduction of CO2. The research data from the National Statistics Institute (INE) and the energy balances of the statistical agency of the European Union (EU) Eurostat.
What are the costs of GHG emissions?
The methodology answers questions like: What are the overall costs of reducing emissions of greenhouse gases (GHGs) for different degrees of reduction of emissions and different rates of reduction?
“We analyzed the targeting (target to reduce emissions) and the timing, ie how far forward or back in time this goal,” says the researcher. In this sense, the timing impact of CO2 reduction is determined by technological developments.
“The conclusion is that if technology evolves following the current trend the best option is to reduce emissions before they expand it in time because the cost difference is not large. However, if the technology to evolve in a more radical and short-term, for example, with new batteries that allow electric cars much cheaper than current or arising substantial progress in renewable energy to displace other technologies, only then, would be more profitable to delay reducing emissions.
Emission reduction policies in Spain
Spain pledged in the Kyoto Protocol not to increase their emissions by more than 15% over 1990 levels. This objective was extended through the National Allocation Plan (2008-2012) to 24% by counting carbon sinks (2%) and the purchase of credits in the trading market (7%).
Emissions in 2007 exceeded 50% and makes Spain one of Europe’s most far from their targets. While in 2006 this trend began to reverse (the economy grew by 4% and emissions fell by 4%) has been the economic crisis (2008-2009) which has forced a reduction in emissions.