EU Climate Policy Shields Economy from Oil Price Shocks
The EU wants to reduce greenhouse gas emissions by 20% to help the environment. This study looked at whether this plan also helps the EU economy by making it stronger when oil prices go up. They used a computer model to test different situations. They found that if oil prices rise with the EU plan, the EU economy will be less affected than if there was no plan. The EU would lose less money with the plan in place. Even though the EU's climate policy costs some money, it also helps protect the economy when oil prices go up—not as bad as without the plan.