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

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  • Jean-Marc Burniaux
  • Jean Chateau
  • Romain Duval
  • Stéphanie Jamet

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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Bibliographic Info

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

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Cited by:
  1. repec:hal:ciredw:hal-00866444 is not listed on IDEAS
  2. World Bank, 2011. "Climate Change and Fiscal Policy : A Report for APEC," World Bank Other Operational Studies 2734, The World Bank.
  3. Duval, Romain & de la Maisonneuve, Christine, 2010. "Long-run growth scenarios for the world economy," Journal of Policy Modeling, Elsevier, vol. 32(1), pages 64-80, January.
  4. Ivan Faiella, 2011. "The demand for energy of Italian households," Temi di discussione (Economic working papers) 822, Bank of Italy, Economic Research and International Relations Area.
  5. Monjon, Stéphanie & Quirion, Philippe, 2011. "Addressing leakage in the EU ETS: Border adjustment or output-based allocation?," Ecological Economics, Elsevier, vol. 70(11), pages 1957-1971, September.
  6. Zhang, Zhong Xiang, 2012. "Competitiveness and Leakage Concerns and Border Carbon Adjustments," International Review of Environmental and Resource Economics, now publishers, vol. 6(3), pages 225-287, December.
  7. 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.
  8. Lai, N.Y.G. & Yap, E.H. & Lee, C.W., 2011. "Viability of CCS: A broad-based assessment for Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(8), pages 3608-3616.
  9. Carlo Carraro & Valentina Bosetti & 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 approach using the WITCH Model," Working Papers 2009_28, Department of Economics, University of Venice "Ca' Foscari".
  10. 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.

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