Effects of post-Kyoto policy on the Swiss national economy - Analysis using a single-country equilibrium model

This final report elaborated for the Swiss Federal Office for the Environment (FOEN) deals with questions concerning Swiss climate policy after 2012. In 2012, existing climate legislation as defined in CO2 emission legislation is to be revised and brought in line with European legislation on greenhouse gases. The paper presents and discusses the proposals of the Swiss government that are to make Switzerland climate-neutral. These questions include how high a steering-tax must be in order to provide a 20% reduction in CO2 emissions, which effects on the economy in general (BIP) and on particular sectors are to be expected, how households will be affected and how large the positive secondary side-effects are. The methods used in the study and their limitations are examined. In particular, a dynamic, single-country equilibrium model is introduced and various scenarios are discussed