OECD Economics Department Working Papers
Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.
The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.
- ISSN: 18151973 (online)
- https://doi.org/10.1787/18151973
Reducing Greenhouse Gas Emissions in a Cost Effective Way in Switzerland
Switzerland has low greenhouse gas emissions per capita as compared to other countries, which reflects the strong reliance on energy sources emitting few greenhouse gas emissions, especially in electricity generation, and little heavy industry. Greenhouse gas emissions have remained almost the same since 1990, as emission reductions in the residential and industrial sector were offset by increases from the transport sector. It is estimated that, in aggregate, marginal abatement costs are relatively high in Switzerland and meeting the 2020 target of a 20% emission reduction below the 1990 level will necessitate more cost effective policies. In particular, more needs to be done in the road transport sector, the domestic sector with the largest potential for emission reductions at relatively low cost. The incentive for energy saving renovations in rented dwellings could be raised by a better design of existing policies. And the policies in the industrial sector could be made more effective with the transition towards linking the Swiss and the EU emission trading systems.
Keywords: carbon tax, residential sector, agriculture, Switzerland, greenhouse gas emissions, emissions trading system, CO2, congestion, industry
JEL:
Q58: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environmental Economics: Government Policy;
Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming;
R41: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise;
H23: Public Economics / Taxation, Subsidies, and Revenue / Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies;
Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth;
Q18: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Agriculture / Agricultural Policy; Food Policy;
R48: Urban, Rural, Regional, Real Estate, and Transportation Economics / Transportation Economics / Transportation Economics: Government Pricing and Policy
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