EconPapers    
Economics at your fingertips  
 

Where in the world is it cheapest to cut carbon emissions?

David Stern (), John Pezzey () and N. Lambie

Australian Journal of Agricultural and Resource Economics, 2012, vol. 56, issue 3

Abstract: Countries with low marginal costs of abating carbon emissions may have high total costs, and vice versa, for a given climate mitigation policy. This may help to explain different countries’ policy stances on climate mitigation. We hypothesize that, under a common percentage cut in emissions intensity relative to business as usual (BAU), countries with higher BAU emission intensities have lower marginal abatement costs, but total costs relative to output will be similar across countries, and under a common carbon price, relative total costs are higher in emission-intensive countries. Using the results of the 22nd Energy Modeling Forum (EMF-22), we estimate marginal abatement cost curves for the US, EU, China and India, which we use to estimate marginal and total costs of abatement under a number of policy options currently under international debate. This analysis provides support for our hypotheses, although its reliability is limited by the shortcomings of the EMF-22 models and the degree to which our econometric model can adequately account for the substantial differences among them.

Keywords: climate change; carbon emissions; marginal abatement cost; meta-analysis.; Environmental Economics and Policy (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://purl.umn.edu/211672 (application/pdf)

Related works:
Journal Article: Where in the world is it cheapest to cut carbon emissions? (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:aareaj:211672

Access Statistics for this article

More articles in Australian Journal of Agricultural and Resource Economics from Australian Agricultural and Resource Economics Society Contact information at EDIRC.
Series data maintained by AgEcon Search ().

 
Page updated 2017-11-19
Handle: RePEc:ags:aareaj:211672