Does Increased Extraction of Natural Gas Reduce Carbon Emissions?
AbstractWithout an international climate agreement, extraction of more natural gas could reduce emissions of CO2 as more “clean” natural gas may drive out “dirty” coal and oil. Using a computable equilibrium model for the Western European electricity and natural gas markets, we examine whether increased extraction of natural gas in Norway reduces global emissions of CO2. We find that both in the short run and in the long run total emissions are reduced if the additional quantity of natural gas is used in gas power production in Norway. If instead the additional quantity is exported directly, total emissions increase both in the short run and in the long run. However, if modest CO2-taxes are imposed, increased extraction of natural gas will reduce CO2 emissions also when the additional natural gas is exported directed.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 34/2003.
Length: 40 pages
Date of creation: 04 Oct 2003
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
natural gas; carbon; emissions; Norway; envirnoment; CO2;
Other versions of this item:
- Finn Aune & Rolf Golombek & Sverre Kittelsen, 2004. "Does Increased Extraction of Natural Gas Reduce Carbon Emissions?," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 29(4), pages 379-400, December.
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- Q38 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Government Policy (includes OPEC Policy)
- Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
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