The effects of harmonized European climate policy targets in comparison to national targets utilizing a European electricity market model

Abstract

We develop a fundamental electricity market model which optimizes the future capacity mix regarding the emission reduction targets and renewable deployment targets for the majority of the European Union member states. By applying that model, we can show the distributional effects between a theoretical harmonized and the current national planning of emission and renewable energy targets. Based on our research, we identify economic inefficiencies in the national climate targets of individual member states.