Macroeconomic Impacts of Abatement Strategies

Strategies to reduce ozone concentrations in Europe can have various economic effects. Each national economy, being confronted with the implementation of environmental protection measures, might react with different production, employment and competitiveness changes. Most environmental policy strategies, such as taxes or emissions permits, promote higher energy prices and thus increased costs for producers and consumers, stimulating economic substitution processes. As all European countries are linked by bilateral trade flows, national impacts have influences and spill-over effects on all other European and non-European countries.