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Marginal Abatement Cost Curves and the Optimal Timing of Mitigation Measures

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  • Adrien Vogt-Schilb

    (CIRED, France)

  • Stéphane Hallegatte

    (The World Bank, Sustainable Development Network, USA)

Abstract

Decision makers facing abatement targets need to decide which abatement measures to implement, and in which order. Measure-explicit marginal abatement cost curves depict the cost and abating potential of available mitigation options. Using a simple intertemporal optimization model, we demonstrate why this information is not su_cient to design emission reduction strategies. Because the measures required to achieve ambitious emission reductions cannot be implemented overnight, the optimal strategy to reach a short-term target depends on longer-term targets. For instance, the best strategy to achieve European's -20% by 2020 target may be to implement some expensive, high-potential, and long-to-implement options required to meet the -75% by 2050 target. Using just the cheapest abatement options to reach the 2020 target can create a carbonintensive lock-in and make the 2050 target too expensive to reach. Designing mitigation policies requires information on the speed at which various measures to curb greenhouse gas emissions can be implemented, in addition to the information on the costs and potential of such measures provided by marginal abatement cost curves.

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Bibliographic Info

Paper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 2013.89.

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Date of creation: Oct 2013
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Handle: RePEc:fem:femwpa:2013.89

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Keywords: Climate Change Mitigation; Dynamic Efficiency; Inertia; Sectoral Policies;

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References

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Citations

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Cited by:
  1. Vogt-Schilb, Adrien & Meunier, Guy & Hallegatte, Stephane, 2012. "How inertia and limited potentials affect the timing of sectoral abatements in optimal climate policy," Policy Research Working Paper Series 6154, The World Bank.
  2. Oskar Lecuyer & Philippe Quirion, 2012. "Can Uncertainty Justify Overlapping Policy Instruments to Mitigate Emissions?," Working Papers 2012.91, Fondazione Eni Enrico Mattei.
  3. Adrien Vogt-Schilb & Stéphane Hallegatte & Christophe De Gouvello, 2014. "Long-Term Mitigation Strategies and Marginal Abatement Cost Curves: A Case Study on Brazil," Post-Print hal-00966821, HAL.
  4. repec:hal:ciredw:hal-00850682 is not listed on IDEAS
  5. repec:hal:ciredw:hal-00850680 is not listed on IDEAS
  6. Vogt-Schilb, Adrien & Meunier, Guy & Hallegatte, Stephane, 2013. "Should marginal abatement costs differ across sectors ? the effect of low-carbon capital accumulation," Policy Research Working Paper Series 6415, The World Bank.
  7. repec:hal:ciredw:hal-00866442 is not listed on IDEAS
  8. Hallegatte, Stephane & Heal, Geoffrey & Fay, Marianne & Treguer, David, 2011. "From growth to green growth -- a framework," Policy Research Working Paper Series 5872, The World Bank.
  9. repec:hal:wpaper:hal-00866440 is not listed on IDEAS
  10. repec:hal:wpaper:hal-00850680 is not listed on IDEAS
  11. repec:hal:wpaper:hal-00866442 is not listed on IDEAS
  12. repec:hal:ciredw:hal-00866440 is not listed on IDEAS
  13. repec:hal:wpaper:hal-00850682 is not listed on IDEAS
  14. Oskar Lecuyer & Adrien Vogt-Schilb, 2013. "Assessing and ordering investments in polluting fossil-fueled and zero-carbon capital," Post-Print hal-00850680, HAL.
  15. repec:fae:wpaper:2014.05 is not listed on IDEAS

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