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Carbon Accumulations and Technical Progress--A Simulation Study of Costs

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  • Anderson, Dennis
  • Bird, Catherine D

Abstract

Discussions of the global warming problem too often proceed as if there were no economically or operationally feasible substitutes for fossil fuels--other than nuclear energy, which of course has environmental problems of its own. However there is a flourishing engineering-economics literature in such substitutes, primarily renewables, and significant public and private R&D activity. This paper presents the results of a simulation study into the costs of substituting non-net-carbon emitting energy sources for fossil fuels, assuming regulatory constraints or taxes are imposed on carbon emissions. The approach taken is to postulate a feasible investment path in what are termed non-carbon or backstop technologies for two regional groupings--the industrial countries, including Eastern Europe and the Soviet Union, and the developing countries--and to estimate the costs to each grouping. The carbon taxes or regulations required to bring the substitutions about can then be imputed from the results. Copyright 1992 by Blackwell Publishing Ltd

Suggested Citation

  • Anderson, Dennis & Bird, Catherine D, 1992. "Carbon Accumulations and Technical Progress--A Simulation Study of Costs," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(1), pages 1-29, February.
    • Handle: RePEc:bla:obuest:v:54:y:1992:i:1:p:1-29
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    Cited by:

    1. Grubb, Michael & Chapuis, Thierry & Duong, Minh Ha, 1995. "The economics of changing course : Implications of adaptability and inertia for optimal climate policy," Energy Policy, Elsevier, vol. 23(4-5), pages 417-431.
    2. Gillingham, Kenneth & Newell, Richard G. & Pizer, William A., 2008. "Modeling endogenous technological change for climate policy analysis," Energy Economics, Elsevier, vol. 30(6), pages 2734-2753, November.
    3. Castelnuovo, Efrem & Galeotti, Marzio & Gambarelli, Gretel & Vergalli, Sergio, 2005. "Learning-by-Doing vs. Learning by Researching in a model of climate change policy analysis," Ecological Economics, Elsevier, vol. 54(2-3), pages 261-276, August.
    4. Neuhoff, K. & Sellers, R., 2006. "Mainstreaming New Renewable Energy Technologies," Cambridge Working Papers in Economics 0624, Faculty of Economics, University of Cambridge.
    5. Azar, Christian & Schneider, Stephen H., 2002. "Are the economic costs of stabilising the atmosphere prohibitive?," Ecological Economics, Elsevier, vol. 42(1-2), pages 73-80, August.
    6. Gerlagh, Reyer & van der Zwaan, Bob, 2003. "Gross world product and consumption in a global warming model with endogenous technological change," Resource and Energy Economics, Elsevier, vol. 25(1), pages 35-57, February.
    7. Marzio Galeotti & Carlo Carraro, 2004. "Does Endogenous Technical Change Make a Difference in Climate Policy Analysis? A Robustness Exercise with the FEEM-RICE Model," Working Papers 2004.152, Fondazione Eni Enrico Mattei.

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