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security of supply. The poles model has been applied in numerous research projects, and analyses based on poles have been published widely. Energy efficiency) is likely to take place at the expense of limiting capital availability, as a factor of production, for other profitable sectors crowding out" effect). Fossil fuel price assumptions Oil prices have fallen by more than 60 since mid-2014, to an average of around 40 /barrel for Brent crude oil in the first four months of 2016. OA view expressed by several stakeholders was that the European Commission should propose a target that takes into consideration the EU principles of subsidiarity and proportionality. Some others focused on the interactions between the target and the measures necessary to reach it, and that the design of the target would to some extent determine the mix of cost-effective measures. Solid imports as well as crude oil and (refinery) feedstock decline throughout the projection period, while oil products imports slightly increase. Transport CO2 standard for cars: 85g/km in 2025; 75g/km in 2030 and 25 gCO2/km in 2050. Early actions under exemption (d) amounted to 34 Mtoe (or.8 ) of all exemptions applied by 13 Member States using this possibility under paragraph.

In all Energy Efficiency policy scenarios, it is assumed that the revenues of the ETS carbon auctions are used to finance energy efficiency investments undertaken by the public sector, with the difference being recycled back to the economy through changes in general indirect taxes (decreases. For rail, internalisation of the costs of air pollution, noise and congestion is assumed from 2030 onwards; for inland waterways internalisation of the costs of air pollution is assumed from 2030 onwards. Compared to the current 2020 cumulative target without exemptions, this amounts to 5  reduction. The global economy financial closure is inter-temporal (in essence it is an extension of the Walras law) and leads to a world interest rate of equilibrium, or alternatively to regional interest rates of equilibrium depending on modelling options. Notably, GEM-E3 has improved its modelling approach by incorporating an explicit representation of the financial sector at the global level and across countries. The main rationale for energy efficiency can vary between Member States with a different emphasis on competitiveness, security of supply and reduced impact on the climate and the environment. Under the the energy efficiency obligation (or alternative measures) to be mandated by continuation of Art 7 of EED. Application of the uptake curve takes into consideration the maturity of technology, capital, operating expenditures and complexity in implementation and operation.

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Technology progress is explicitly represented in the production function, either exogenous or endogenous, depending on R D expenditure by private and public sector and taking into account spill-over effects. The version of GEM-E3 used in this Impact Assessment includes a detailed financial sector country-by-country, where institutional sectors (government, private and foreign) raise and repay debts financed by commercial banks, which take leverage from a central bank. Figure 16: Industrial energy demand versus activity (value added) Source: primes In the residential sector, energy demand remains below 2015 levels throughout the projection period. Figure 53: Estimated annual energy savings (ktoe) for the new period Source: Ricardo AEA/CE Delft (2016) It is important to recognise the long-term impact from certain measures with long lifetimes such as savings stemming from the renovation of buildings which will continue to have. The reason for choosing euco27 baseline is explained in chapter.1.1 and in Annex 4 of the impact assessment accompanying the renewable energy initiative. It allows assessing the contribution to future energy needs of the various energy types (fossil fuels, nuclear, renewables) and energy vectors. Financing the upfront costs may exert a crowding out effect, to the detriment of productive investment, at a degree which again depends on external financing and the availability of borrowing. The economy and energy demand are closely linked; economic activity creates the demand for energy, but energy consumption also affects the economy through output in the energy production and distribution sectors (e.g. OHowever, if sunset clause if lifted, eligible measures should not be further restricted. The table below shows, that significant EEVs are needed to achieve higher energy efficiency levels.

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