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The role of technological availability for the distributive impacts of climate change mitigation policy

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  • Lüken, Michael
  • Edenhofer, Ottmar
  • Knopf, Brigitte
  • Leimbach, Marian
  • Luderer, Gunnar
  • Bauer, Nico

Abstract

The impacts of the availability of low-carbon technologies on the regional distribution of mitigation costs are analyzed in a global multi-regional integrated assessment model. Three effects on regional consumption losses are distinguished: domestic measures, trade of fossil energy carriers and trade of emission permits. Key results are: (i) GDP losses and a redirection of investments in the energy system towards capital-intensive technologies are major contributions to regional consumption losses. (ii) A devaluation of tradable fossil energy endowments contributes largely to the mitigation costs of fossil fuel exporters. (iii) In case of reduced availability of low-carbon technologies, the permit market volume and associated monetary redistributions increase. The results suggest that the availability of a broad portfolio of low-carbon technologies could facilitate negotiations on the permit allocation scheme in a global cap-and-trade system.

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  • Lüken, Michael & Edenhofer, Ottmar & Knopf, Brigitte & Leimbach, Marian & Luderer, Gunnar & Bauer, Nico, 2011. "The role of technological availability for the distributive impacts of climate change mitigation policy," Energy Policy, Elsevier, vol. 39(10), pages 6030-6039, October.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6030-6039
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    3. Rübbelke, Dirk & Vögele, Stefan, 2013. "Effects of carbon dioxide capture and storage in Germany on European electricity exchange and welfare," Energy Policy, Elsevier, vol. 59(C), pages 582-588.
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    5. Schwanitz, Valeria Jana & Piontek, Franziska & Bertram, Christoph & Luderer, Gunnar, 2014. "Long-term climate policy implications of phasing out fossil fuel subsidies," Energy Policy, Elsevier, vol. 67(C), pages 882-894.
    6. 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.
    7. 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.
    8. Arroyo-Currás, Tabaré & Bauer, Nico & Kriegler, Elmar & Schwanitz, Valeria Jana & Luderer, Gunnar & Aboumahboub, Tino & Giannousakis, Anastasis & Hilaire, Jérôme, 2015. "Carbon leakage in a fragmented climate regime: The dynamic response of global energy markets," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 192-203.
    9. Marian Leimbach & Nico Bauer, 2022. "Capital markets and the costs of climate policies," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 24(3), pages 397-420, July.
    10. Deetman, Sebastiaan & Hof, Andries F. & Pfluger, Benjamin & van Vuuren, Detlef P. & Girod, Bastien & van Ruijven, Bas J., 2013. "Deep greenhouse gas emission reductions in Europe: Exploring different options," Energy Policy, Elsevier, vol. 55(C), pages 152-164.
    11. Matthias Weitzel, 2017. "Who gains from technological advancement? The role of policy design when cost development for key abatement technologies is uncertain," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 19(1), pages 151-181, January.

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