Assessment of the economic impacts of the revision of the Swiss CO2 law with a hybrid model

In Switzerland, as in many other OECD countries, transportation and housing are responsible for the major part of greenhouse gas (GHG) emissions. In the framework of the assessment of the policies envisaged in Switzerland for the revision of the CO2-Law for the post-2012 period, the Federal Office for the Environment expressed its interest in having a detailed modeling of both transportation and housing sectors in order to precisely evaluate the economic impacts of the future policies. In this report, the Research group on the economics and management REME at EPFL performs that evaluation, coupling its GEMINI-E3 model, a worldwide CGE model with special emphasis on Switzerland, with MARKAL energy models describing the energy systems used for the Swiss residential and transportation sectors. There results a hybrid model with a detailed technological representation of both residential and transportation sectors. It is used to assess economic consequences of the policies considered after the consultation procedure of the revision of the Swiss CO2-Law.