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On The Regional Distribution Of Climate Mitigation Costs: The Impact Of Delayed Cooperative Action

Author

Listed:
  • TINO ABOUMAHBOUB

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

  • GUNNAR LUDERER

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

  • ELMAR KRIEGLER

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

  • MARIAN LEIMBACH

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

  • NICO BAUER

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

  • MICHAJA PEHL

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

  • LAVINIA BAUMSTARK

    (Potsdam Institute for Climate Impact Research, 14412 Potsdam, Germany)

Abstract

This paper analyzes the results of the climate-energy-economy model, Regionalized Model of Investment and Technological Development (REMIND), to assess the regional costs of climate-change mitigation for reaching the 2°C target with a medium to high likelihood. We assume that the global climate regime remains fragmented until 2020 after which a global mitigation target is adopted. We decompose the regional mitigation costs into (a) domestic and energy trade effects and (b) permit trade effects. Delaying cooperative action affects domestic costs by increasing the energy system's costs as a consequence of lock-in of carbon-intensive infrastructures. This is particularly true in developing countries with low near-term emissions reduction commitments. In a global cap-and-trade system, the effect of delayed action highly depends on whether or not the regions are over- or under-allocated with emissions allowances in the long term. Those with allowances exceeding their long-term emissions will likely benefit from the delay, while others suffer the consequences of higher long-term carbon prices.

Suggested Citation

  • Tino Aboumahboub & Gunnar Luderer & Elmar Kriegler & Marian Leimbach & Nico Bauer & Michaja Pehl & Lavinia Baumstark, 2014. "On The Regional Distribution Of Climate Mitigation Costs: The Impact Of Delayed Cooperative Action," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 5(01), pages 1-27.
  • Handle: RePEc:wsi:ccexxx:v:05:y:2014:i:01:n:s2010007814400028
    DOI: 10.1142/S2010007814400028
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    Citations

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    Cited by:

    1. Marian Leimbach & Niklas Roming & Gregor Schwerhoff & Anselm Schultes, 2016. "Development perspectives of Sub-Saharan Africa under climate policies," EcoMod2016 9336, EcoMod.
    2. Leimbach, Marian & Roming, Niklas & Schultes, Anselm & Schwerhoff, Gregor, 2018. "Long-Term Development Perspectives of Sub-Saharan Africa under Climate Policies," Ecological Economics, Elsevier, vol. 144(C), pages 148-159.
    3. Marian Leimbach & Anastasis Giannousakis, 2019. "Burden sharing of climate change mitigation: global and regional challenges under shared socio-economic pathways," Climatic Change, Springer, vol. 155(2), pages 273-291, July.
    4. Kriegler, Elmar & Riahi, Keywan & Bauer, Nico & Schwanitz, Valeria Jana & Petermann, Nils & Bosetti, Valentina & Marcucci, Adriana & Otto, Sander & Paroussos, Leonidas & Rao, Shilpa & Arroyo Currás, T, 2015. "Making or breaking climate targets: The AMPERE study on staged accession scenarios for climate policy," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 24-44.
    5. 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.
    6. Jérôme Hilaire & Jan C. Minx & Max W. Callaghan & Jae Edmonds & Gunnar Luderer & Gregory F. Nemet & Joeri Rogelj & Maria Mar Zamora, 2019. "Negative emissions and international climate goals—learning from and about mitigation scenarios," Climatic Change, Springer, vol. 157(2), pages 189-219, November.

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