Welfare implications of EU eort sharing decision and possible impact of a hard Brexit

摘要

Using a meta-game approach it is possible to analyse the ESDWith the ESD, high-income European countries pay for low-incomeEuropean countriesA hard Brexit would induce a welfare cost of UK climate policy (43 billion US $)A soft brexit (i.e. a hird access status") would moderate UK cost( 34 billion US $)Within the Brexit scenarios MSs that are net sellers of permits (newMs) suer from less revenue and, in contrast, net buyers experiencesome benetsBrexit will divert EC from climate policy in short and mid termEC will look after the Brexit during several yearsBrexit reinforces the leadership of Germany that accounts now for1/4 of CO2 European emissionsBut also other countries that are less sensitive to climate policy(Eastern countries)