| Title |
Modelling the European Union Sustainability Transition: A Soft-Linking Approach |
| ID_Doc |
63439 |
| Authors |
Bassi, AM; Costantini, V; Paglialunga, E |
| Title |
Modelling the European Union Sustainability Transition: A Soft-Linking Approach |
| Year |
2021 |
| Published |
Sustainability, 13, 11 |
| DOI |
10.3390/su13116303 |
| Abstract |
The European Green Deal (EGD) is the most ambitious decarbonisation strategy currently envisaged, with a complex mix of different instruments aiming at improving the sustainability of the development patterns of the European Union in the next 30 years. The intrinsic complexity brings key open questions on the cost and effectiveness of the strategy. In this paper we propose a novel methodological approach to soft-linking two modelling tools, a systems thinking (ST) and a computable general equilibrium (CGE) model, in order to provide a broader ex-ante policy evaluation process. We use ST to highlight the main economic feedback loops the EGD strategy might trigger. We then quantify these loops with a scenario analysis developed in a dynamic CGE framework. Our main finding is that such a soft-linking approach allows discovery of multiple channels and spillover effects across policy instruments that might help improve the policy mix design. Specifically, positive spillovers arise from the adoption of a revenue recycling mechanism that ensures strong support for the development and diffusion of clean energy technologies. Such spillover effects benefit not only the European Union (EU) market but also non-EU countries via trade-based technology transfer, with a net positive effect in terms of global emissions reduction. |
| Author Keywords |
clean energy technologies; European Green Deal; dynamic computable general equilibrium model; policy complexity; revenue recycling; technological spillovers; systems thinking; sustainable energy transition |
| Index Keywords |
Index Keywords |
| Document Type |
Other |
| Open Access |
Open Access |
| Source |
Science Citation Index Expanded (SCI-EXPANDED); Social Science Citation Index (SSCI) |
| EID |
WOS:000660761700001 |
| WoS Category |
Green & Sustainable Science & Technology; Environmental Sciences; Environmental Studies |
| Research Area |
Science & Technology - Other Topics; Environmental Sciences & Ecology |
| PDF |
https://www.mdpi.com/2071-1050/13/11/6303/pdf?version=1622772575
|