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Marginal abatement cost curves and the optimal timing of mitigation measures

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  • Adrien Vogt-Schilb

    ()
    (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Centre de coopération internationale en recherche agronomique pour le développement [CIRAD] : UMR56 - CNRS : UMR8568 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - AgroParisTech)

  • Stéphane Hallegatte

    ()
    (SDN - Sustainable Development Network - The World Bank)

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 sufficient 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 carbon-intensive 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 HAL in its series Post-Print with number hal-00916328.

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Date of creation: 14 Jan 2014
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Publication status: Published, Energy Policy, 2014, 66, 645-653
Handle: RePEc:hal:journl:hal-00916328

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Keywords: climate change mitigation; dynamic efficiency; 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. repec:hal:wpaper:hal-00850680 is not listed on IDEAS
  3. repec:hal:ciredw:hal-00866442 is not listed on IDEAS
  4. repec:hal:ciredw:hal-00850682 is not listed on IDEAS
  5. Oskar Lecuyer & Philippe Quirion, 2012. "Can Uncertainty Justify Overlapping Policy Instruments to Mitigate Emissions?," Working Papers 2012.91, Fondazione Eni Enrico Mattei.
  6. repec:hal:wpaper:hal-00850682 is not listed on IDEAS
  7. 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.
  8. 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.
  9. repec:fae:wpaper:2014.05 is not listed on IDEAS
  10. repec:hal:ciredw:hal-00850680 is not listed on IDEAS
  11. Oskar Lecuyer & Adrien Vogt-Schilb, 2013. "Assessing and ordering investments in polluting fossil-fueled and zero-carbon capital," Post-Print hal-00850680, HAL.
  12. Stéphane Hallegatte & Geoffrey Heal & Marianne Fay & David Treguer, 2012. "From Growth to Green Growth - a Framework," NBER Working Papers 17841, National Bureau of Economic Research, Inc.
  13. repec:hal:wpaper:hal-00866442 is not listed on IDEAS
  14. Pegels, Anna & Lütkenhorst, Wilfried, 2014. "Is Germany’s Energy Transition a case of successful Green Industrial Policy? Contrasting wind and solar PV," MPRA Paper 57827, University Library of Munich, Germany.
  15. repec:hal:wpaper:hal-00866440 is not listed on IDEAS

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