Implications of the 2030 EU Resource Efficiency target on Sustainability
12:00 - 13:30
This paper presents an application of a model-based framework specifically conceived to assess future sustainability over time, at country and macro-regional level, across scenarios. The methodology relies upon a multi-step procedure. First, a macro-economic model is extended, tailored and run to keep track future patterns of a set of economic, social and environmental indicators. Then, indicators are normalized to a common metrics. Finally, indicators are aggregated to derive a broader measure of sustainability.
Such a methodology is flexible enough to analyze the effects of indicators-specific policies on all sustainability dimensions as well as the composite FEEM Sustainaiblity Index. The current analysis explores the implications of achieving the EU27 Resource Efficiency target on sustainability. The 30% increase of EU27 Resource Efficiency by 2030 with respect to the current level is implemented through an ad-valorem tax to the use of mining resources. This implies an overall increase in EU sustainability with respect to the reference “no policy” scenario as the negative effects on the economy (slightly lower GDP and Investment rate) is more than offset by the considerable benefits for the environment.