Accelerating emission reduction in Israel: Carbon pricing vs. policy standards. (January 2023)

• Record Type: Journal Article
• Authors: Palatnik, Ruslana Rachel; Davidovitch, Ayelet; Krey, Volker; Sussman, Nathan; Riahi, Keywan; Gidden, Matthew
• Is Part Of: Energy strategy reviews. Volume 45(2023)
• Publication Date: 2023-01
• Subjects: Carbon emission reduction -- 2050 goals -- Linked bottom-up-top-down modeling -- Carbon pricing -- Green policy standards -- Renewable energy; Energy policy -- Periodicals; 333.7905
• DOI: 10.1016/j.esr.2022.101032
• Languages: English
• ISSNs: 2211-467X

Abstract

Abstract: The implementation of a carbon pricing policy to comply with GHG emission targets faces opposition in small economies. An integrated modeling exercise was carried out for Israel to assess the cost-effectiveness of GHG emission reduction options. Alternative policies in terms of carbon pricing and policy standards are evaluated. The results show that modest carbon pricing is effective. It achieves a 67% reduction in emissions, by 2050 relative to the reference year 2015, while having only a minor impact on economic growth. Policy standards currently proposed by the government will only reach a 40% emissions reduction in the same timeframe. Clean energy standards not coupled with carbon pricing may hinder efficiency but have a lesser impact on income distribution. Highlights: Analysis of economic impacts of alternative paths for GHG emission reduction in Israel. Dialogue with policymakers allowed evaluating scenarios under consideration and shape decision-making. Countrywide application of the integrated assessment model linked to the dynamic macroeconomic model. A significant decline in emissions can be efficiently achieved under modest carbon pricing. Carbon pricing is more efficient than policy standards that are under current consideration.