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Learning from Nationally Determined Contributions

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  • Akimoto, Keigo
  • Aldy, Joseph
  • Aleluia Reis, Lara
  • Carraro, Carlo
  • Pizer, Billy
  • Tavoni, Massimo

Abstract

National governments have submitted emission mitigation pledges under the Paris Agreement that vary considerably in their form, level of required emission mitigation, elaboration of non-emission goals, and implementation strategies. As a result, domestic emission mitigation programs necessary to deliver on the Paris pledges will diverge in the degree to which that mitigation will be achieved at least cost. This paper explores both what we learn from how national determined contributions (NDCs) diverge from least-cost policies and the implications for comparing mitigation effort. The NDCs can reveal a country's preferences over climate policy, economic development, and other priorities. Modeling analysis of the NDCs can highlight opportunities for (i) measuring the revealed cost of institutional and political constraints that limit least cost implementation; (ii) mitigating climate change alongside other policy objectives; (iii) policy learning over time. We undertake two case studies based on global energy-economic models to illustrate how implementation of NDCs may deviate from least-cost implementation. In the first case study, we employ the WITCH model to assess how the non-emissions goals in NDCs may constrain implementation in a way that increases costs related to cost-effective emissions abatement. In the second case study, we employ the DNE21+ model to assess how countries' stated domestic implementation policies may diverge from a cost-effective domestic mitigation policy. These modelling analyses serve to illustrate how comparing mitigation implementation can then be represented by a bounding exercise that develops both conservative and generous estimates of mitigation effort.

Suggested Citation

  • Akimoto, Keigo & Aldy, Joseph & Aleluia Reis, Lara & Carraro, Carlo & Pizer, Billy & Tavoni, Massimo, 2018. "Learning from Nationally Determined Contributions," CEPR Discussion Papers 12757, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:12757
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    References listed on IDEAS

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    1. Valentina Bosetti & Carlo Carraro & Marzio Galeotti & Emanuele Massetti & Massimo Tavoni, 2006. "WITCH. A World Induced Technical Change Hybrid Model," Working Papers 2006_46, Department of Economics, University of Venice "Ca' Foscari".
    2. Manne, Alan & Mendelsohn, Robert & Richels, Richard, 1995. "MERGE : A model for evaluating regional and global effects of GHG reduction policies," Energy Policy, Elsevier, vol. 23(1), pages 17-34, January.
    3. Joseph E. Aldy & Alan J. Krupnick & Richard G. Newell & Ian W. H. Parry & William A. Pizer, 2010. "Designing Climate Mitigation Policy," Journal of Economic Literature, American Economic Association, vol. 48(4), pages 903-934, December.
    4. repec:wsi:ccexxx:v:02:y:2011:i:02:n:s201000781100022x is not listed on IDEAS
    5. William Pizer & Dallas Burtraw & Winston Harrington & Richard Newell & James Sanchirico, 2006. "Modeling Economy-wide vs Sectoral Climate Policies Using Combined Aggregate-Sectoral Models," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 135-168.
    6. Warwick J. Mckibbin & Adele C. Morris & Peter J. Wilcoxen, 2011. "Comparing Climate Commitments: A Model-Based Analysis Of The Copenhagen Accord," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 79-103.
    7. Geoffrey Blanford & James Merrick & Richard Richels & Steven Rose, 2014. "Trade-offs between mitigation costs and temperature change," Climatic Change, Springer, vol. 123(3), pages 527-541, April.
    8. Sebastian Rausch and Valerie J. Karplus, 2014. "Markets versus Regulation: The Efficiency and Distributional Impacts of U.S. Climate Policy Proposals," The Energy Journal, International Association for Energy Economics, vol. 0(Special I).
    9. David I. Stern & John C. V. Pezzey & N. Ross Lambie, 2012. "Where in the world is it cheapest to cut carbon emissions?," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 56(3), pages 315-331, July.
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    1. repec:eee:enepol:v:130:y:2019:i:c:p:7-21 is not listed on IDEAS

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    Keywords

    comparability of effort; Emissions mitigation; international environmental agreements; modeling analysis; nationally determined contributions;

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