A MERGE Model with Endogenous Technological Change and the Cost of Carbon Stabilization

Socrates Kypreos
Additional contact information
Socrates Kypreos: Paul Scherrer Institute

No 2005.123, Working Papers from Fondazione Eni Enrico Mattei

Abstract: Two stylized backstop systems with endogenous technological learning formulations (ETL) are introduced in MERGE: one for the electric and the other for the non-electric markets. Then the model is applied to analyze the impacts of ETL on carbon-mitigation policy, contrasting the resulting impacts with the situation without learning. As the model considers endogenous technological change in the energy sector only some exogenous key parameters defining the production function are varied together with the assumed learning rates to check the robustness of our results. Based on model estimations and the sensitivity analyses we conclude that increased commitments for the development of new technologies to advance along their learning curves has a potential for substantial reductions in the cost of climate mitigation helping to reach safe concentrations of carbon in the atmosphere.

Keywords: Climate change stabilization policies; Non-linear optimization; Induced technological change; Energy and macroeconomy (search for similar items in EconPapers)
JEL-codes: C61 O30 Q42 Q43 (search for similar items in EconPapers)
Date: 2005-10
New Economics Papers: this item is included in nep-ene and nep-env
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://feem-media.s3.eu-central-1.amazonaws.com/w ... oads/NDL2005-123.pdf (application/pdf)

Related works:
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:fem:femwpa:2005.123

Access Statistics for this paper

More papers in Working Papers from Fondazione Eni Enrico Mattei Contact information at EDIRC.
Bibliographic data for series maintained by Alberto Prina Cerai ( this e-mail address is bad, please contact ).