Marginal Abatement Cost of Carbon Emissions under Different Shared Socioeconomic Pathways

Na Liu and Futie Song
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Na Liu: Business School, East China University of Science and Technology, Xuhui District, Shanghai 200237, China
Futie Song: Business School, East China University of Science and Technology, Xuhui District, Shanghai 200237, China

Sustainability, 2021, vol. 13, issue 24, 1-17

Abstract: Future emissions scenarios have served as a primary basis for assessing climate change and formulating climate policies. To explore the impact of uncertainty in future emissions scenarios on major outcomes related to climate change, this study examines the marginal abatement cost (MAC) of carbon emissions under the latest Shared Socioeconomic Pathways (SSPs) subject to the economic optimum and the 1.5 °C temperature increase constraint using the Epstein-Zin (EZ) climate model. Taking the “Regional Rivalry” (SSP3) scenario narrative under the economic optimum as a representative case, the expected MACs per ton CO 2 equivalent (CO 2 e) emissions in the years 2015, 2030, 2060, 2100, and 2200 are: $102.08, $84.42, $61.19, $10.71, and $0.12, respectively. In parallel, the associated expected average mitigation rates (AMRs) are 0%, 63%, 66%, 81%, and 96%, respectively. In summary, in a world developing towards regional rivalry (SSP3) or fossil-fueled development (SSP5) with high mitigation pressure, the MAC values have approximately doubled, compared with the sustainability (SSP1) and inequality (SSP4) storylines with low mitigation pressure levels. The SSP2 (Middle of the Road) shows a moderate MAC decreasing trend with moderate mitigation pressure. The results provide a carbon price benchmark for policy makers with different attitudes towards the unknown future and can be used to formulate carbon mitigation strategy to respond to specific climate goals.

Keywords: EZ climate model; shared socioeconomic pathways; marginal abatement cost; average mitigation rate (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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