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Endogenous Structural Change and Climate Targets Modeling Experiments with Imaclim-R

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  • Renaud Crassous, Jean-Charles Hourcade, Olivier Sassi

Abstract

This paper envisages endogenous technical change that results from the interplay between the economic growth engine, consumption, technology and localization patterns. We perform numerical simulations with the recursive dynamic general equilibrium model Imaclim-R to study how modeling induced technical change affects costs of CO2 stabilization. Imaclim-R incorporates innovative specifications about final consumption of transportation and energy to represent critical stylized facts such as rebound effects and demand induction by infrastructures and equipments. Doing so brings to light how induced technical change may not only lower stabilization costs thanks to pure technological progress, but also trigger induction of final demandÑeffects critical to both the level of the carbon tax and the costs of policy given a specific stabilization target. Finally, we study the sensitivity of total stabilization costs to various parameters including both technical assumptions as accelerated turnover of equipments and non-energy choices as alternative infrastructure policies.

Suggested Citation

  • Renaud Crassous, Jean-Charles Hourcade, Olivier Sassi, 2006. "Endogenous Structural Change and Climate Targets Modeling Experiments with Imaclim-R," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 259-276.
  • Handle: RePEc:aen:journl:2006se-a13
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    References listed on IDEAS

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    Cited by:

    1. Gunnar Luderer & Valentina Bosetti & Michael Jakob & Henri Waisman & Jan Steckel & Ottmar Edenhofer, 2009. "Towards a Better Understanding of Disparities in Scenarios of Decarbonization: Sectorally Explicit Results from the RECIPE Project," Working Papers 2009.117, Fondazione Eni Enrico Mattei.
    2. Dorothée Charlier & Anna Risch & Claire Salmon, 2016. "Reducing the Energy Burden of the Poor and Greenhouse Gas Emissions: Can We Kill Two Birds with One Stone?," Working Papers hal-01385470, HAL.
    3. Sandrine Mathy & Céline Guivarch, 2009. "What if energy decoupling of emerging economies were not so spontaneous ? An illustrative example on India," CIRED Working Papers hal-00866443, HAL.
    4. Gusdorf, Francois & Hallegatte, Stephane, 2007. "Behaviors and housing inertia are key factors in determining the consequences of a shock in transportation costs," Energy Policy, Elsevier, vol. 35(6), pages 3483-3495, June.
    5. Kai LESSMANN & Robert MARSCHINSKI & Ottmar EDENHOFER, "undated". "The Effects of Trade Sanctions in International Environmental Agreements," EcoMod2008 23800079, EcoMod.
    6. repec:eee:ecolec:v:143:y:2018:i:c:p:294-313 is not listed on IDEAS
    7. F. Souty & T. Brunelle & P. Dumas & B. Dorin, & P. Ciais & R. Crassous, 2012. "The Nexus Land-Use Model, an Approach Articulating Biophysical Potentials and Economic Dynamics to Model Competition for Land-Uses," Working Papers 2012.16, Fondazione Eni Enrico Mattei.
    8. Schafer, Andreas, 2012. "Introducing behavioral change in transportation into energy/economy/environment models," Policy Research Working Paper Series 6234, The World Bank.
    9. Gunnar Luderer & Enrica DeCian & Jean-Charles Hourcade & Marian Leimbach & Henri Waisman & Ottmar Edenhofer, 2012. "On the regional distribution of mitigation costs in a global cap-and-trade regime," Climatic Change, Springer, vol. 114(1), pages 59-78, September.
    10. Gusdorf, Francois & Hallegatte, Stephane, 2007. "Compact or spread-out cities: Urban planning, taxation, and the vulnerability to transportation shocks," Energy Policy, Elsevier, vol. 35(10), pages 4826-4838, October.
    11. Ayres, Robert U., 2008. "Sustainability economics: Where do we stand?," Ecological Economics, Elsevier, vol. 67(2), pages 281-310, September.
    12. Charlier, Dorothée & Risch, Anna & Salmon, Claire, 2018. "Energy Burden Alleviation and Greenhouse Gas Emissions Reduction: Can We Reach Two Objectives With One Policy?," Ecological Economics, Elsevier, vol. 143(C), pages 294-313.
    13. Ghersi, Frédéric & McDonnell, Simon & Sassi, Olivier, 2013. "Do overarching mitigation objectives dominate transport-specific targets in the EU?," Energy Policy, Elsevier, vol. 55(C), pages 3-15.
    14. Jean-Francois Mercure, 2012. "On the changeover timescales of technology transitions and induced efficiency changes: an overarching theory," Papers 1209.0424, arXiv.org.
    15. Casey, Gregory, 2017. "Energy Efficiency and Directed Technical Change: Implications for Climate Change Mitigation," MPRA Paper 76416, University Library of Munich, Germany.
    16. Alexander Golub & Oleg Lugovoy & Anil Markandya & Ramon Arigoni Ortiz & James Wang, 2013. "Regional IAM: analysis of risk-adjusted costs and benefits of climate policies," Working Papers 2013-06, BC3.
    17. del Río, Pablo, 2011. "Analysing future trends of renewable electricity in the EU in a low-carbon context," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2520-2533, June.
    18. Mathy, Sandrine & Fink, Meike & Bibas, Ruben, 2015. "Rethinking the role of scenarios: Participatory scripting of low-carbon scenarios for France," Energy Policy, Elsevier, vol. 77(C), pages 176-190.
    19. Hübler, Michael & Baumstark, Lavinia & Leimbach, Marian & Edenhofer, Ottmar & Bauer, Nico, 2012. "An integrated assessment model with endogenous growth," Ecological Economics, Elsevier, vol. 83(C), pages 118-131.
    20. Céline Guivarch & Renaud Crassous & Olivier Sassi & Stéphane Hallegatte, 2011. "The costs of climate policies in a second-best world with labour market imperfections," Climate Policy, Taylor & Francis Journals, vol. 11(1), pages 768-788, January.
    21. repec:spr:annopr:v:255:y:2017:i:1:d:10.1007_s10479-016-2340-z is not listed on IDEAS
    22. Céline Guivarch & Renaud Crassous & Olivier Sassi & Stéphane Hallegatte, 2009. "The costs of climate policies in a second best world with labour market," CIRED Working Papers hal-00866429, HAL.
    23. François Gusdorf & Stéphane Hallegatte, 2006. "Behaviors and housing inertia are key factors in determining the consequences of a shock in transportation costs," Working Papers halshs-00096936, HAL.
    24. Céline Guivarch & Renaud Crassous & Olivier Sassi & Stéphane Hallegatte, 2009. "The costs of climate policies in a second best world with labour market," Working Papers hal-00866429, HAL.
    25. Bibas, Ruben & Méjean, Aurélie & Hamdi-Cherif, Meriem, 2015. "Energy efficiency policies and the timing of action: An assessment of climate mitigation costs," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 137-152.

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