PIE estimates CO2 emission fees for households at €802 per year
19:08
The potential annual cost to a household in the European Union of extending the EU ETS, i.e. introducing carbon dioxide emission charges in the transport and residential sectors, is estimated at €373 for transport and €429 for residential buildings (altogether €802), according to a report by the Polish Economic Institute (PIE) entitled “The cost to households of including transport and residential buildings in the EU ETS”.
The report presents the impact of the extension of the EU ETS, the introduction of carbon pricing in the transport and residential sectors, on EU household budgets. The cost evaluation was carried out based on several scenarios. Two approaches were used. In the first, an exogenous EUA price derived from three different scenarios was used to assess the potential costs of enlargement. In the second approach, the price is calculated endogenously, i.e. within the model as the allowance price needed to achieve the desired emission reduction (-40%) in the transport and construction sectors, in line with the overall target of 62% for the whole ETS. The resulting emission reductions and corresponding CO2 prices were compared.
