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Title:France's environmental policies: Internalising global and local externalities PDF Logo
Authors:Egert, Balazs
Issue Date:2012
Series/Report no.:CESifo Working Paper: Resource and Environment Economics 3887
Abstract:France has a very ambitious environmental-policy agenda, aimed chiefly at cutting greenhouse gas (GHG) emissions but also at dealing with local air and water pollution, waste management and the conservation of biodiversity. The laws that followed the Grenelle de l'environnement encompass policy measures in energy generation, manufacturing, transport, waste management, construction and agriculture to encourage a transition towards a low-carbon economy. The government is committed to an ambitious GHG reduction objective of 75% to be achieved by 2050. This paper evaluates its policies in terms of cost effectiveness, with a special emphasis on: how to impose a unique carbon price in the aftermath of the rejection of the carbon tax by the Constitutional Council; the challenges relating to renewable and nuclear electricity generation; the ways to reduce carbon intensity in the residential and transport sectors; how to improve waste management; and whether external costs related to the use of fertilisers and pesticides are properly accounted for in water management. Whereas considerable progress has been made to green the economy, an important challenge that remains is to internalise global and local externalities in all sectors of the economy so as to increase the cost-effectiveness of environmental policies.
Subjects:GHG emissions
global warming
carbon price
abatement cost
renewables
nuclear power
negative externalities
environmental policies
water pollution
waste management
JEL:Q41
Q42
Q48
Q52
Q53
Q54
Q58
H23
Document Type:Working Paper
Appears in Collections:CESifo Working Papers, CESifo Group Munich

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