Developing the PAGE2002 Model with Endogenous Technical Change
AbstractPresented research demonstrates the inclusion of endogenous technical change into the PAGE2002 integrated assessment model of climate change. The ‘experience curve’ or learning-by-doing concept, made popular by the Boston Consulting Group during the 1960’s provides a mechanism with which to describe cost reduction through experiential learning. The implementation of learning requires both a restructuring of the way costs are modelled as well as the inclusion of an explicit learning function with initial abatement costs and learning coefficients calibrated to historical renewable energy data. The discounted values for total abatement costs are calculated for both the standard PAGE2002 model without an explicit learning function and the modified PAGE2002 model. The results were found to be of a similar magnitude, partially due to the myopic effects of discounting, though the result was found to be highly sensitive to the learning rate used, which in our case was a conservative estimate.
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Bibliographic InfoPaper provided by Faculty of Economics, University of Cambridge in its series Cambridge Working Papers in Economics with number 0632.
Date of creation: Apr 2006
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Endogenous Technical Change; Learning Curves; Climate Change;
Find related papers by JEL classification:
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
- Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-04-29 (All new papers)
- NEP-CSE-2006-04-29 (Economics of Strategic Management)
- NEP-ENE-2006-04-29 (Energy Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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