WP 10 - Assessment of Policy Instruments to Internalize Environment-Related External Costs in non-EU Member States

Objectives

  • To assess policy instruments to internalise externalities in non EU Member States, via promotion of renewables, focusing on Turkey, Bulgaria, India, China and Brazil.
  • To investigate stakeholders preferences for policy instruments to promote renewable energy sources through a stakeholders workshop (together with WPs 8-11).

Description of work

Task 1: Synopsis of policy instruments for the promotion of renewables in non-EU Countries (UBATH).

Task 2: Comparison of techniques and instruments used in non-EU Countries with those used in EU-Countries for the internalisation of externalities. Also policies that are not currently been used, but are debated are considered. The identification of differences across EU and non-EU Countries allows to recognise potential policies that may be implemented in non-EU Countries for the internalisation of the externalities in the production of electricity. This analysis focuses on policy instruments that should be taken into account by Candidate Countries, considering their potential entrance in the EU (UBATH).

Task 3: Analysis of the extent to which different policy instruments succeed in internalising the net external benefits of renewables in year 2010, 2020, 2030. WP 1 and WP 5 contribute to this analysis with the description of energy use scenarios and with 2010, 2020, 2030 estimates of the risks of energy supply (UBATH).

Task 4: Analysis of the social and fiscal implications of different internalisation instruments, focusing on the impacts on the most vulnerable groups in society and on the fiscal burdens created by some instruments working through positive incentive schemes on the basis of government payments (UBATH, TUBITAK).

Task 5: Development of suggestions to improve possible instruments to reduce their negative social and fiscal impacts while increasing their power to achieve an extensive internalisation of the net external benefits of renewables; of a suggestion for an integrated EU policy for the internalisation of the positive net external benefits of renewables (UBATH). Finally, an analysis of the hidden costs of the implementation of different policy instruments for the internalisation of net external benefits of renewables is carried out (UBATH). This task is validated by stakeholders involved in Workshop 2 exploiting CBA and MCDA. The workshop investigates stakeholders views on policies for the internalisation of the external costs of energy production and on the promotion of renewables. Particular attention is given to policy instruments impacts on employment/competitiveness, effectiveness in achieving internalisation, administrative costs, dynamic incentives for technological innovation, flexibility of adjustment once policy introduced, distributional, equity and acceptability consequences, security of supply (NTUA).

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