Economic and Social Effects of Decarbonization
Project leader
Nela Vlahinić Lenz, PhD, Full Professor
Members of the project team
Saša Žiković, PhD, Full Professor
Trina Mjeda, PhD, Assistant Professor
Barbara Fajdetić, MEcon
Nikolina Blašković, MBA
Ani Trstenjak, MBA
Ivana Rogulj, MBA
Florijan Ćelić, MEcon
Abstract
The topic of decarbonisation has become extremely important for all countries, especially for EU since the EU implemented ambitious climate goals and policies that will lead to strong decarbonisation and climate neutral economy until 2050. On the global level, the research body of literature in the field of climate change and its effects - economic and social ones, is growing due to the extreme importance of the topic. Still, divergent results of recent studies regarding economic, especially macroeconomic effects, as well as social effects, confirm the need of deeper and comprehensive research.
Decarbonisation has started and ambitious EU climate goals will force all EU Member States to dramatically change their economy and even way of life. Big structural changes in energy and other sectors due to lower share of fossil fuels and higher share of renewable energy sources will result with economic and social costs for some sectors and market groups. Big economic changes like shifts in investment structure, dynamics of investments, economic growth and structure of energy production can be expected. In such conditions, energy will not be cheap, what would certainly have an effect on the economy’s cost structure and competitiveness. Therefore, the key question is whether it is possible to achieve economic growth and energy development with complete reduction of emissions till 2050, what would be the costs, as well as other economic and social consequences. On the other hand, transition towards low carbon economy will encourage new investments, create new "green” jobs and base for new and socially sustainable economic growth. Research within this project is based on the hypothesis that decarbonisation will encourage new "green” investments, result with structural changes in energy and other sectors. Creation of new industries and services can exceed the economic costs of transition and speed up economic growth, which will be environmentally and socially sustainable.
Key words
decarbonisation, economic effects, social effects, economic growth, CO2 emissions
