Mitigation Strategies and Costs of Climate Protection: The effects of ETC in the hybrid Model MIND

Ottmar Edenhofer, Kai Lessmann and Nico Bauer

No 12025, Climate Change Modelling and Policy Working Papers from Fondazione Eni Enrico Mattei (FEEM)

Abstract: MIND is a hybrid model incorporating several energy related sectors in an endogenous growth model of the world economy. This model structure allows a better understanding of the linkages between the energy sectors and the macro-economic environment. We perform a sensitivity analysis and parameter studies to improve the understanding of the economic mechanisms underlying opportunity costs and the optimal mix of mitigation options. Parameters representing technological change that permeates the entire economy have a strong impact on both the opportunity costs of climate protection and on the optimal mitigation strategies, e.g. parameters in the macro-economic environment and in the extraction sector. Sector-specific energy technology parameters change the portfolio of mitigation options but have only modest effects on opportunity costs, e.g. learning rate of the renewable energy technologies. We conclude that feedback loops between the macro-economy and the energy sectors are crucial for the determination of opportunity costs and mitigation strategies.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Pages: 27
Date: 2005
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/12025/files/wp050150.pdf (application/pdf)

Related works:
Journal Article: Mitigation Strategies and Costs of Climate Protection: The Effects of ETC in the Hybrid Model MIND (2006)
Journal Article: Mitigation Strategies and Costs of Climate Protection: The Effects of ETC in the Hybrid Model MIND (2006)
Working Paper: Mitigation Strategies and Costs of Climate Protection: The effects of ETC in the hybrid Model MIND (2005)
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:feemcc:12025

DOI: 10.22004/ag.econ.12025

Access Statistics for this paper

More papers in Climate Change Modelling and Policy Working Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().