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On the optimal timing of reductions of CO2 emissions; an economists' perspective on the debate on "when flexibility"

  • Henri de Groot

    ()

Reducing the emission of greenhouse gases to reduce climate change is high on the policy agenda. Discounted costs of reduction are estimated to be substantial. They depend on the employment of various flexibility mechanisms that affect these costs. One of these flexibility mechanisms is the so-called when-flexibility stressing the timing of policy measures aimed at reducing CO2-emissions. This paper surveys the arguments in favour of early and late reduction. By means of an illustration of some of the key-mechanisms, we discuss an applied analysis of optimal timing performed with the applied general equilibrium model DICE.

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Paper provided by CPB Netherlands Bureau for Economic Policy Analysis in its series CPB Discussion Paper with number 1.

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Date of creation: Jul 2001
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Handle: RePEc:cpb:discus:1
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  1. repec:ner:tilbur:urn:nbn:nl:ui:12-80016 is not listed on IDEAS
  2. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
  3. Bovenberg, A.L. & Smulders, J.A., 1993. "Environmental quality and pollution-saving technological change in a two-sector endogenous growth model," Discussion Paper 1993-21, Tilburg University, Center for Economic Research.
  4. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
  5. Buonanno, Paolo & Carraro, Carlo & Galeotti, Marzio, 2003. "Endogenous induced technical change and the costs of Kyoto," Resource and Energy Economics, Elsevier, vol. 25(1), pages 11-34, February.
  6. Aalbers, R.F.T., 1999. "On the implications of thresholds for economic science and environmental policy," Other publications TiSEM 1b70587b-5494-4f87-bf3a-7, Tilburg University, School of Economics and Management.
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  8. Lans Bovenberg, A. & Smulders, Sjak, 1995. "Environmental quality and pollution-augmenting technological change in a two-sector endogenous growth model," Journal of Public Economics, Elsevier, vol. 57(3), pages 369-391, July.
  9. Arrow, Kenneth J & Fisher, Anthony C, 1974. "Environmental Preservation, Uncertainty, and Irreversibility," The Quarterly Journal of Economics, MIT Press, vol. 88(2), pages 312-19, May.
  10. repec:dgr:kubcen:1999106 is not listed on IDEAS
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