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Modelling an international market of CO 2 emission permits

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  • O. Bahn, S. Kypreos, B. Bueler, H.J. Luthi

Abstract

Many regions, e.g. countries, have developed energy-economy models (such as MARKAL-MACRO, MM) to assess their energy policies, in particular concerning the curbing of their carbon dioxide CO2) emissions. To integrate regional MM models, we propose a multiregional MARKAL-MACRO (mMM) model. It enables one to study international cooperation to curb jointly CO2 emissions through a market of emission permits (certificates). Furthermore, from a decision support perspective, the mMM model can be used to integrate aspects of ecological sustainability (in relation to the climate change issue), economic welfare, efficient resource use and technological innovation. To solve mMM, we have used two alternative mathematical methods. We have implemented both in parallel on a network of independent workstations. As a numerical application, we study the cooperation of three European countries (the Netherlands, Sweden and Switzerland) to curb jointly their CO2 emissions.

Suggested Citation

  • O. Bahn, S. Kypreos, B. Bueler, H.J. Luthi, 1999. "Modelling an international market of CO 2 emission permits," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 12(1/2/3/4/5), pages 283-291.
    • Handle: RePEc:ids:ijgeni:v:12:y:1999:i:1/2/3/4/5/6:p:283-291
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    Cited by:

    1. Milad Maralani & Milad Maralani & Basil Sharp & Golbon Zakeri, 2016. "The Potential Impact of Industrial Energy Savings on The New Zealand Economy," EcoMod2016 9308, EcoMod.

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