Carbon abatement costs: an integrated approach for India*

Sujata Gupta and Stephen Hall

Environment and Development Economics, 1996, vol. 1, issue 1, 41-63

Abstract: Economic models for assessing costs of greenhouse gas abatement can be classified as macroeconomic (top-down) models or micro (bottom-up) models. As yet little attention has been focused on the modelling of developing countries. This paper proposes a methodology for integrating the two approaches and illustrates it with the example of India. The results show that a carbon tax would have limited effectiveness in controlling carbon emissions. Investing carbon tax revenues in carbon-abating technologies can give substantial carbon savings. The costs of carbon abatement using the integrated model are higher than those predicted by other global models with India as a sub-region.

Date: 1996
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