Economic Instruments for a Low-carbon Future
Show Less

Economic Instruments for a Low-carbon Future

Edited by Theodoros Zachariadis, Janet E. Milne, Mikael Skou Andersen and Hope Ashiabor

Critically assessing recent developments in environmental and tax legislation, and in particular low-carbon strategies, this timely book analyses the implementation of market-based instruments for achieving climate stabilisation objectives around the world.
Buy Book in Print
Show Summary Details
You do not have access to this content

Chapter 11: The importance of a carbon tax for timely and cost-effective decarbonisation – a case study from Cyprus

Chryso Sotiriou and Theodoros Zachariadis

Abstract

In European countries greenhouse gas emissions abatement seems to be most challenging in those sectors of the economy which are not subject to the European Union’s Emissions Trading System. In this chapter we examine decarbonisation options for the EU Member State of Cyprus. We consider the adoption of abatement measures coupled with the implementation of a gradually increasing carbon tax. We combine a long-term energy forecast model with an optimisation model that examines least-cost abatement pathways for the medium- and the long-term objective. Our simulations provide evidence that the lack of ambition in the medium-term will lock the economy into a carbon-intensive trajectory. For this purpose, we find that a carbon tax in the order of 120 Euros per tonne of CO2 can facilitate a transition to a low-carbon economy. Taking into account environmental side-benefits of emission abatement, ambitious policies turn out to be the socially optimal approach.

You are not authenticated to view the full text of this chapter or article.

Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.

Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.

Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.


Further information

or login to access all content.