Fragmented Landscape of European Policies in the Energy Sector: First-Mover Advantages

In order to achieve the commonly agreed emission reduction target, European Commission developed binding national targets for each member state until 2030 and called upon states submit National Energy Climate Plans ensure increased transparency respective strategies. An analysis of these plans shows that some reductions set at level prescribe a more ambitious decarbonisation than EU-wide limits. However, since transformation climate-friendly system requires considerable investment, question arises as why apparently want be in vanguard. We find countries may have an incentive outperform other development low-carbon electricity pass on part costs neighbouring countries.