publication . Research . Preprint . 2009

Is Fuel-Switching a No-Regrets Environmental Policy? VAR Evidence on Carbon Dioxide Emissions, Energy Consumption and Economic Performance in Portugal

Pereira, Alfredo Marvão; Pereira, Rui Manuel Marvão;
Open Access
  • Published: 03 Aug 2009
Abstract
The objective of this paper is to estimate the impact of carbon dioxide emissions from fossil fuel combustion activities on economic activity in Portugal in order to evaluate the economic costs of policies designed to reduce carbon dioxide emissions. We find that energy consumption has a significant impact on macroeconomic activity. In fact, a one ton of oil equivalent permanent reduction in aggregate energy consumption reduces output by €6,340 over the long term, an aggregate impact which hides a wide diversity of effects for different fuel types. More importantly, and since carbon dioxide emissions are linearly related to the amounts of fuel consumed, our resu...
Subjects
free text keywords: carbon dioxide emissions, energy and the economy, environmental policy, fuel-switching, vector autoregressive model, carbon dioxide emissions, environmental policy, energy and the economy, fuel-switching, vector autoregressive model, jel:C32, jel:O13, jel:Q43
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publication . Research . Preprint . 2009

Is Fuel-Switching a No-Regrets Environmental Policy? VAR Evidence on Carbon Dioxide Emissions, Energy Consumption and Economic Performance in Portugal

Pereira, Alfredo Marvão; Pereira, Rui Manuel Marvão;