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Technological Change and International Trade -Insights from REMIND-R

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  • Marian Leimbach
  • Nico Bauer
  • Lavinia Baumstark
  • Michael Lüken
  • Ottmar Edenhofer

Abstract

Within this paper, we explore the technical and economic feasibility of very low stabilization of atmospheric GHG concentration based on the hybrid model REMIND-R. The Fourth Assessment Report of the IPCC and the scientific literature have analyzed some low stabilization scenarios but with as yet little attention being given to the regional distribution of the global mitigation costs. Our study helps to fill this gap. While we examine how technological development and international trade affect mitigation costs, this paper is novel in addressing the interaction between both. Simulation results show for instance that reduced revenues from fossil fuel exports in a low stabilization scenario tend to increase mitigation costs borne by the exporting countries, but this impact varies with the technology options available. Furthermore it turns out that the use of biomass in combination with carbon capturing and sequestration is key in order to achieve ambitious CO2 reduction targets. Regions with high biomass potential can clearly benefit from the implementation of low stabilization scenarios due to advantages on the carbon market. This may even hold if a reduced biomass potential is assumed.

Suggested Citation

  • Marian Leimbach & Nico Bauer & Lavinia Baumstark & Michael Lüken & Ottmar Edenhofer, 2010. "Technological Change and International Trade -Insights from REMIND-R," The Energy Journal, , vol. 31(1_suppl), pages 109-136, June.
    • Handle: RePEc:sae:enejou:v:31:y:2010:i:1_suppl:p:109-136
    DOI: 10.5547/ISSN0195-6574-EJ-Vol31-NoSI-5
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    References listed on IDEAS

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    1. 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.
    2. Schulz, Thorsten F. & Barreto, Leonardo & Kypreos, Socrates & Stucki, Samuel, 2007. "Assessing wood-based synthetic natural gas technologies using the SWISS-MARKAL model," Energy, Elsevier, vol. 32(10), pages 1948-1959.
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