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The Economics of Climate Change Mitigation: Policies and Options for the Future

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Author Info
Jean-Marc Burniaux
Jean Château
Romain Duval
Stéphanie Jamet

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Abstract

Considering the costs and risks of inaction, ambitious action to reduce greenhouse gas emissions is economically rational. However, success in abating world emissions will ultimately require a least-cost set of policy instruments that is applied as widely as possible across all emission sources (countries, sectors and greenhouse gases). The main purpose of this paper is to explore feasible ways to meet these two basic requirements for successful future climate policies. Using a range of modelling frameworks, it analyses cost-effective policy mixes to reduce emissions, the implications of incomplete coverage of policies for the costs of mitigation action and carbon leakage, the role of technology-support policies in lowering future emissions and policy costs, as well as the incentives –and possible options to enhance them – for emitting countries to take action against climate change.

L’économie de l’atténuation du changement climatique : : Politiques et options futures
Eu égard aux coûts et aux risques de l’inaction, une action ambitieuse visant à réduire les émissions de gaz à effet de serre est économiquement rationnelle. Cependant, tout succès en matière de réduction des émissions nécessitera in fine qu’un ensemble d’instruments de politiques à moindre coût s’applique à un ensemble aussi vaste que possible de sources d’émissions (pays, secteurs et gaz à effet de serre). L’objectif principal de cet article est d’explorer les moyens concrets de satisfaire à ces deux conditions de base d’un succès des futures politiques climatiques. Sur la base d’un éventail de modèles, il analyse différents ensembles de politiques à moindre coût, l’impact d’une couverture incomplète des politiques sur les coûts de la réduction des émissions et les fuites carbone, la contribution des politiques de soutien à la technologie à la baisse des émissions futures et au coût des politiques, ainsi que les incitations – et les options possibles pour les améliorer – des pays émetteurs à agir contre le changement climatique.

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Publisher Info
Paper provided by OECD, Economics Department in its series OECD Economics Department Working Papers with number 658.

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Date of creation: 17 Dec 2008
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Handle: RePEc:oec:ecoaaa:658-en

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Related research
Keywords: burden sharing; carbon leakage; climate change; climate policy; co-benefits; energy R&D; bénéfices annexes; changement climatique; fuites de carbone; partage de la charge; politique climatique;

Find related papers by JEL classification:
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
O3 - Economic Development, Technological Change, and Growth - - Technological Change
Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters

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  1. Carlo Carraro, 2009. "The Road to Copenhagen: What Agreement Can Actually Be Effective and Stable? by Carlo Carraro," CESifo Forum, Ifo Institute for Economic Research at the University of Munich, vol. 10(3), pages 30-36, October. [Downloadable!]
  2. Valentina Bosetti & Carlo Carraro & Enrica De Cian & Romain Duval & Emanuele Massetti & Massimo Tavoni, 2009. "The Incentives to Participate in, and the Stability of, International Climate Coalitions: A Game-theoretic Analysis Using the Witch Model," Working Papers 2009.64, Fondazione Eni Enrico Mattei. [Downloadable!]
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