Macroeconomic implications of a burden sharing non-ETS GHG target in Bulgaria and Romania
This study assessed the macroeconomic implications of an EU wide burden sharing GHG emissions reduction scheme for the Bulgarian and Romanian economies. With an overall EU GHG target at -40% compared to 1990 (-36.5% compared to 2005), two scenarios had been examined and compared: a least cost implementation and a burden sharing scheme. The GEM-E3-NMS computable general equilibrium model was used to quantify the effects of the alternative GHG emission reduction scenarios. The burden sharing scheme involved the allocation of emission allowances based on a GDP/capita approach. The main concept of the GDP/capita approach was that countries that are below the EU average will receive additional permits and countries above will receive fewer permits.