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The Costs of Reducing CO2 Emissions: A Technical Manual


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  • Jean-Marc Burniaux
  • John P. Martin
  • Giuseppe Nicoletti
  • Joaquim Oliveira Martins


This paper presents simulation results using the OECD Secretariat's GREEN model to quantify the economic costs of possible international agreements to curb CO2 emissions. These results supersede the initial GREEN results published in Working Paper no. 103 in June 1991. The first section of the paper summarises the analysis and draws some conclusions for policy. Section II of the paper reviews the so-called Business-as-Usual scenario and presents some sensitivity analysis around it. Section III considers international agreements under which emission curbs are only applied by the OECD countries or the EC and no actions are taken by the non-OECD regions. Particular attention is paid to the possibility that unilateral action by the OECD countries might give rise to so-called "carbon leakages", i.e. higher emissions in the non-OECD regions. Section IV extends the coverage of the international agreements to embrace the non-OECD countries. It quantifies the gains from cost-effective ... Cette étude présente les résultats des simulations utilisant le modèle GREEN, construit par le Sécretariat de l'OCDE, qui a pour objectif la quantification des coûts économiques des éventuels accords internationaux pour réduire les émissions de CO2. Ces résultats remplacent les résultats préliminaires obtenus avec GREEN, publiés dans le document de travail no. 103 en juin 1991. La première partie de cette étude résume l'analyse et tire quelques conclusions de politique économique. La section II passe en revue le scénario de réference ainsi que les facteurs auxquels ce scenario est particulièrement sensible. La section III considère les accords internationaux pour lesquels les réductions d'émissions sont seulement appliquées dans les pays de l'OCDE ou dans la CE et aucune action est prise par les régions non-OCDE. Une attention particulière a été donnée à la possibilité que des actions unilatérales par les pays de l'OCDE donnent lien à des "fuites de carbonne", i.e., qu'elles ...

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 115.

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Date of creation: 1992
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Handle: RePEc:oec:ecoaaa:115-en

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Cited by:
  1. Alistair fnUlph, 1996. "Environmental policy instruments and imperfectly competitive international trade," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 7(4), pages 333-355, June.
  2. Fisher, Brian S. & Tulpule, Vivek & Brown, Stephen, 1998. "The climate change negotiations: the case for differentiation," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, Australian Agricultural and Resource Economics Society, vol. 42(1), March.
  3. Finn Roar Aune & Solveig Glomsrød & Lars Lindholt & Knut Einar Rosendahl, 2005. "Are high oil prices profitable for OPEC in the long run?," Discussion Papers, Research Department of Statistics Norway 416, Research Department of Statistics Norway.
  4. Johan Eyckmans, 1999. "Strategy Proof Uniform Effort Sharing Schemes For Transfrontier Pollution Problems," Environmental & Resource Economics, European Association of Environmental and Resource Economists, European Association of Environmental and Resource Economists, vol. 14(2), pages 165-189, September.
  5. Hochman, Gal & Rajagopal, Deepak & Timilsina, Govinda & Zilberman, David, 2011. "The role of inventory adjustments in quantifying factors causing food price inflation," Policy Research Working Paper Series 5744, The World Bank.
  6. Christoph Bohringer & Heinz Welsch, 2006. "Burden sharing in a greenhouse: egalitarianism and sovereignty reconciled," Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 38(9), pages 981-996.
  7. Gjerde, Jon & Grepperud, Sverre & Kverndokk, Snorre, 1999. "Optimal climate policy under the possibility of a catastrophe," Resource and Energy Economics, Elsevier, Elsevier, vol. 21(3-4), pages 289-317, August.
  8. Lars Lindholt, 1999. "Beyond Kyoto: CO2 permit prices and the markets for fossil fuels," Discussion Papers, Research Department of Statistics Norway 258, Research Department of Statistics Norway.


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