Sustainability, neutrality and beyond in the framework of Swiss post-2012 climate policy

Switzerland, as many developed countries, face a double problem for the next round of international negotiations on climate change. On the one hand, short term economic strategies would favor the implementation of a global carbon market that would minimize abatement costs globally. On the other hand, purchasing emissions certificates from developing countries does not prepare for the major technological and social changes that will certainly be required before the end of the century to avoid climate change. In this paper we use a coupled top-down bottom-up model to assess the impacts of a number of ambitious climate policies in Switzerland. We find that stringent policies with both domestic and total emission targets are affordable for a wealthy country like Switzerland. Such policies could not only put Switzerland in a leading po- sition regarding climate change issues but also pave the way for its long term climate policies.