3E Centre hosts Session 3 in “Competition law turns green” series -- Environmental economics at the service of competition policy
Competition economics supports the analysis and decision-making on market failures in competition. In fact, also the evolving sustainability agenda can be seen as way to address a major market failure: that of a degrading environment. There is economics scholarship that analyses also this type of market failures: environmental economics. The theme explored in Session 3 of the “Competition law Turns Green” series, organised by Klaudia Majcher (3E Centre & Vienna University of Economics and Business), Dave Anderson (3E Centre & BCLP law firm) and 3E professor Harri Kalimo, was whether and how environmental economics could, or maybe should, be used in competition law assessments.
In the session held on 10 November, two international experts in environmental economics -- Karsten Neuhoff, (Berlin Technical University & DIW) and David Foster (Frontier Economics) -- explained precisely that with concrete examples on the decarbonisation of mobility in the UK and state aid cases on energy sector in three EU countries. Reacting to and discussing the experts’ presentations from their private perspectives were three experts with policy-making backgrounds: Astrid Ladefoged (DG ENV), Andreas Themelis (Hellenic Competition Commission (HCC)) and Philipp Dimakopoulos (DG COMP).
The examples and the discussion showed how there clearly is scope and data that can and should, at least in selected cases, be integrated into competition analyses. The models also showed that this is however a difficult task; the analyses tend to be very complex. This is so, even while they do not yet even quantify well all important environmental aspects like water use and diversity. On the other hand, the HCC is already moving into testing the use of environmental economics models in “Policy Sandboxes”. “Our event will hopefully help in initiating a closer interaction between competition and environmental economics and experts”, noted Harri Kalimo and Klaudia Majcher.
- Wednesday 9 December, 15:30-17:00