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Coal’s medium-run future under atmospheric greenhouse gas stabilization

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  • Kathryn Daenzer
  • Ian Wing
  • Karen Fisher-Vanden

Abstract

We assess the future of coal under alternative climate stabilization regimes, investigating how the quantity and location of future coal production, trade and use depends upon five factors: the supply-side constraint of resource depletion, diversification and deepening of international trade, economic growth, trends in energy intensity, and the availability of coal-fired carbon-free electric generation technology (IGCC-CCS). Using the Phoenix computable general equilibrium model of the world economy, we find that coal is sensitive to demand-side assumptions about economic growth and energy-saving structural or technological change. In a 550 ppm stabilization emission tax scenario, the gobal coal industry initially declines sharply and then rebounds, in 2050 reaching roughly the same size as it is today—but only if IGCC-CCS is available by 2020. Under alternative stabilization regimes, IGCC-CCS penetration is a key influence on production and imports in major coal regions, where it interacts with extraction costs driven by the rate of depletion relative to trade partners. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Kathryn Daenzer & Ian Wing & Karen Fisher-Vanden, 2014. "Coal’s medium-run future under atmospheric greenhouse gas stabilization," Climatic Change, Springer, vol. 123(3), pages 763-783, April.
    • Handle: RePEc:spr:climat:v:123:y:2014:i:3:p:763-783
    DOI: 10.1007/s10584-014-1094-3
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    Cited by:

    1. John Weyant & Elmar Kriegler, 2014. "Preface and introduction to EMF 27," Climatic Change, Springer, vol. 123(3), pages 345-352, April.
    2. van Ruijven, Bas J. & Daenzer, Katie & Fisher-Vanden, Karen & Kober, Tom & Paltsev, Sergey & Beach, Robert H. & Calderon, Silvia Liliana & Calvin, Kate & Labriet, Maryse & Kitous, Alban & Lucena, Andr, 2016. "Baseline projections for Latin America: base-year assumptions, key drivers and greenhouse emissions," Energy Economics, Elsevier, vol. 56(C), pages 499-512.
    3. Clarke, Leon & McFarland, James & Octaviano, Claudia & van Ruijven, Bas & Beach, Robert & Daenzer, Kathryn & Herreras Martínez, Sara & Lucena, André F.P. & Kitous, Alban & Labriet, Maryse & Loboguerre, 2016. "Long-term abatement potential and current policy trajectories in Latin American countries," Energy Economics, Elsevier, vol. 56(C), pages 513-525.

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