Report on "A New Growth Path for Europe"
A new report, presented on 21 February, 2011 in Brussels, demonstrates the possibility and chance to create more jobs in Europe and boost the European economy by raising the European climate target from 20% to 30% and thus reducing CO2 emissions. The report “A New Growth Path for Europe. Generating Prosperity and Jobs in the Low-Carbon Economy” was commissioned by the German Ministry for the Environment, Nature Conservation and Nuclear Safety and carried out by the several leading European Universities and Institutes.
The report comes to the conclusion that post-crisis Europe can boost its economy and the job market by fighting climate change and raising its emission target from 20% up to 30% emission reduction by 2020 compared to the level of 1990. In order to achieve the target, clear policies are needed. As a result, the growth rate of the European economy could go up by 0.6% per year and up to 6 million additional jobs could be created Europe-wide. All broad economic sectors would have an increased production, especially noticeable in the construction business. However, the key factor for this revitalization of the European economy is a substantial increase in investments, so the authors of the report state.
The report also informs about enriching existing models. Thereby it focuses on previous assessments, especially the climate policy assessments, which have been produced during the process leading to the EU20/20/20 package, and the need for enhanced models. Hereby the authors criticise that the previous models mostly ignore the two major economic effects of investment and of leaning-by-doing, as well as their interaction. According to the authors “These effects are well-established on both empirical and theoretical grounds. Yet, they are hard to implement in existing models and have been neglected so far.”
More information can be found at: http://www.european-climate-forum.net/index.php?id=24&tx_ttnews[tt_news]=33&tx_ttnews[backPid]=11&cHash=ae84d5e64c2550b88c6b15671d50597b