The Director and the scientific advisory board of the National Institute of Economic Research (NIER) provide 10 conditions for an ambitious and cost-effective climate policy in SvD opinion on October 23rd 2014.

The analyses was commissioned by the Government, who wished to know more about how policies could be designed in a cost effective manner.

”Our analysis shows 10 conditions that enable an ambitious climate policy without unnecessarily high costs:”

In order to read all of the paragraphs and their justifications, go to the SvD article ”10 förutsättningar för en klimatsmart politik” (10 conditions for a smart climate policy, only in Swedish).

1. Produce climate objectives for the 2030-2050 period.

2. Let the climate objective alone power the transition to a low-carbon society and remove objectives for renewable energy and energy efficiency.

3. Avoid sectorial climate objectives.

4. Continue pricing emissions using either a carbon tax or through the EU ETS (Emission Trading System).

5. Allow the policy instruments steer towards one objective. The EU ETS will not only reduce emissions but also provide incentives for investing in new technology.

6. Allow flexibility between sectors within and outside of the EU ETS.

7. Be restrictive with other policy instruments.

8. Work towards ensuring that measures to sequester carbon in forests and fields are included in the Swedish climate objective.

9. Motivate climate policy based on the climate issues urgency.

10. Evaluate the climate policy’s revenues and expenses.

The article is signed by:

Eva Samakovlis, Head of Research, NIER

Runar Brännlund, Professor of Economics, Umeå University, Chairman of the NIER Scientific Advisory Board.

Thomas Aronsson, Professor of Economics, Umeå University, member of the NIER Scientific Advisory Board.

Ing-Marie Green, Professor of Economics, SLU Uppsala, member of the NIER Scientific Advisory Board.

Caroline Leck, Professor of Chemical Meteorology, Stockholm University, member of the NIER Scientific Advisory Board.

Patrik Söderholm, Professor of economics, Luleå University of Technology, member of the NIER Scientific Advisory Board.

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