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Assessment of the Effectiveness of Global Climate Policies Using Coupled Bottom-up and Top-down Models

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  • Labriet, Maryse
  • Drouet, Laurent
  • Vielle, Marc
  • Loulou, Richard
  • Kanudia, Amit
  • Haurie, Alain

Abstract

In order to assess climate mitigation agreements, we propose an iterative procedure linking TIAM-WORLD, a global technology-rich optimization model, and GEMINI-E3, a global general equilibrium model. The coupling methodology combines the precise representation of energy and technology choices with a coherent representation of the macro-economic impacts, especially in terms of trade effects of climate policies on energy-intensive products. In climate mitigation scenarios, drastic technology breakthroughs are required as soon as possible, especially in large emitting countries, and in all sectors of the economy. Energy-intensive industries tend to be delocalized in regions where low-carbon production is feasible and cheap, or in regions without emission cap. However, emission leakage remains small, mainly due to global lower oil demand, and energy exporting countries are extremely penalized given lower energy exports. Emission reduction at least in the power sector and in energy-intensive industries of developing countries must be considered to reach the 2°C target.

Suggested Citation

  • Labriet, Maryse & Drouet, Laurent & Vielle, Marc & Loulou, Richard & Kanudia, Amit & Haurie, Alain, 2015. "Assessment of the Effectiveness of Global Climate Policies Using Coupled Bottom-up and Top-down Models," Climate Change and Sustainable Development 199946, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemcl:199946
    DOI: 10.22004/ag.econ.199946
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    Cited by:

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    3. Diamantis Koutsandreas & Evangelos Spiliotis & Haris Doukas & John Psarras, 2021. "What Is the Macroeconomic Impact of Higher Decarbonization Speeds? The Case of Greece," Energies, MDPI, vol. 14(8), pages 1-19, April.
    4. Xin Su & Frédéric Ghersi & Fei Teng & Gaëlle Treut & Meicong Liang, 2022. "The economic impact of a deep decarbonisation pathway for China: a hybrid model analysis through bottom-up and top-down linking," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(1), pages 1-37, January.
    5. Postic, Sebastien & Selosse, Sandrine & Maïzi, Nadia, 2017. "Energy contribution to Latin American INDCs: Analyzing sub-regional trends with a TIMES model," Energy Policy, Elsevier, vol. 101(C), pages 170-184.
    6. Christian Calvillo, 2023. "The Impacts of Energy Efficiency Modelling in Policy Making," Energies, MDPI, vol. 16(4), pages 1-23, February.
    7. Pisciella, Paolo & van Beesten, E. Ruben & Tomasgard, Asgeir, 2023. "Efficient coordination of top-down and bottom-up models for energy system design: An algorithmic approach," Energy, Elsevier, vol. 284(C).
    8. Ajay Gambhir & Isabela Butnar & Pei-Hao Li & Pete Smith & Neil Strachan, 2019. "A Review of Criticisms of Integrated Assessment Models and Proposed Approaches to Address These, through the Lens of BECCS," Energies, MDPI, vol. 12(9), pages 1-21, May.

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    More about this item

    Keywords

    Environmental Economics and Policy; Resource /Energy Economics and Policy;

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

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