Marginal abatement cost curves in general equilibrium: The influence of world energy prices
Abstract
Marginal abatement cost curves (MACCs) are a favorite instrument to analyze international emissions trading. This paper focusses on the question of how to define MACCs in a general equilibrium context where the global abatement level influences energy prices and in turn national MACCs. We discuss the mechanisms theoretically and then use the CGE model DART for quantitative simulations. The result is, that changes in energy prices resulting from different global abatement levels do indeed affect national MACCs. Also, we compare different possibilities of defining MACCs - of which some are robust against changes in energy prices while others vary considerably.Download Info
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Paper provided by Kiel Institute for the World Economy in its series Open Access publications from Kiel Institute for the World Economy with number info:hdl:10419/3775.Length:
Date of creation: 2006
Date of revision:
Publication status: Published in Resource and energy economics (2006) v.28, p.1-23
Handle: RePEc:ner:ifwkie:info:hdl:10419/3775
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Web page: http://www.ifw-kiel.de
Related research
Keywords: Klimaschutz; Klimaveränderung; Umweltschutzkosten; Erdölpreis; Allgemeines Gleichgewicht; Simulation; Welt;Other versions of this item:
- Klepper, Gernot & Peterson, Sonja, 2006. "Marginal abatement cost curves in general equilibrium: The influence of world energy prices," Resource and Energy Economics, Elsevier, vol. 28(1), pages 1-23, January.
- Gernot Klepper & Sonja Peterson, 2004. "Marginal Abatement Cost Curves in General Equilibrium: The Influence of World Energy Prices," Working Papers 2004.136, Fondazione Eni Enrico Mattei.
- C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- F18 - International Economics - - Trade - - - Trade and Environment
- Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply
References
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Lange, Andreas & Löschel, Andreas & Vogt, Carsten & Ziegler, Andreas, 2010.
"On the self-interested use of equity in international climate negotiations,"
European Economic Review,
Elsevier, vol. 54(3), pages 359-375, April.
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- Vijay, Samudra & DeCarolis, Joseph F. & Srivastava, Ravi K., 2010. "A bottom-up method to develop pollution abatement cost curves for coal-fired utility boilers," Energy Policy, Elsevier, vol. 38(5), pages 2255-2261, May.
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- Adrien Vogt-Schilb & Stéphane Hallegatte, 2011. "When Starting with the Most Expensive Option Makes Sense On Marginal Abatement Cost Curves and Optimal Abatement Pathways," Working Papers hal-00626261, HAL.
- Blyth, William & Bunn, Derek & Kettunen, Janne & Wilson, Tom, 2009. "Policy interactions, risk and price formation in carbon markets," Energy Policy, Elsevier, vol. 37(12), pages 5192-5207, December.
- Jaehn, Florian & Letmathe, Peter, 2010. "The emissions trading paradox," European Journal of Operational Research, Elsevier, vol. 202(1), pages 248-254, April.
- Kretschmer, Bettina & Narita, Daiju & Peterson, Sonja, 2009. "The economic effects of the EU biofuel target," Open Access publications from Kiel Institute for the World Economy info:hdl:10419/32984, Kiel Institute for the World Economy.
- Nadine Heitmann & Sonja Peterson, 2012. "The Potential Contribution of the Shipping Sector to an Efficient Reduction of Global Carbon Dioxide Emissions," Kiel Working Papers 1813, Kiel Institute for the World Economy.
- Golub, Alla & Hertel, Thomas & Lee, Huey-Lin & Rose, Steven & Sohngen, Brent, 2009. "The opportunity cost of land use and the global potential for greenhouse gas mitigation in agriculture and forestry," Resource and Energy Economics, Elsevier, vol. 31(4), pages 299-319, November.
- Sonja Peterson & Gernot Klepper, 2007. "Distribution Matters � Taxes vs. Emissions Trading in Post Kyoto Climate Regimes," Kiel Working Papers 1380, Kiel Institute for the World Economy.
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