ON THE REGIONAL DISTRIBUTION OF CLIMATE MITIGATION COSTS: THE IMPACT OF DELAYED COOPERATIVE ACTION

Tino Aboumahboub (), Gunnar Luderer, Elmar Kriegler, Marian Leimbach, Nico Bauer, Michaja Pehl and Lavinia Baumstark
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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

Climate Change Economics (CCE), 2014, vol. 05, issue 01, 1-27

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.

Keywords: Regional mitigation costs; delayed cooperative action; burden sharing; integrated assessment models (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (6)

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DOI: 10.1142/S2010007814400028

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