Broadening the scope of the analysis of the possible risk of carbon leakage induced by the Decarbonization Roadmap 2050
Broadening the scope of the analysis of the possible risk of carbon leakage induced by the Decarbonization Roadmap 2050
This study is part of a Framework Service Contract with the EU Commission, Directorate-General (DG) Enterprise and Industry. The objective of the study was to analyze the Decarbonization Roadmap 2050 published by the EU Commission regarding its effects on carbon leakage and the competitiveness of carbon intensive sectors. The analysis extends and applies the global computable general equilibrium (CGE) model PACE at ZEW. The aim was to extend the time horizon of the model combining a high sectoral disaggregation with a bottom-up representation of electricity supply that distinguishes different technologies. The model behaviour in future periods was calibrated to data given by the EIA International Energy Outlook and in particular by the Decarbonization Roadmap for Europe. The analysis expected to provide valuable information for the practical realization of decarbonization in the EU with a sector specific point of view.