Marginal abatement cost curves in general equilibrium: The influence of world energy prices

Gernot Klepper and Sonja Peterson ()

Open Access Publications from Kiel Institute for the World Economy from Kiel Institute for the World Economy (IfW Kiel)

Abstract: Marginal abatement cost curves (MACCs) are a favorite instrument to analyze international emissions trading. This paper focusses on the question of how to define MACCs in a general equilibrium context where the global abatement level influences energy prices and in turn national MACCs. We discuss the mechanisms theoretically and then use the CGE model DART for quantitative simulations. The result is, that changes in energy prices resulting from different global abatement levels do indeed affect national MACCs. Also, we compare different possibilities of defining MACCs - of which some are robust against changes in energy prices while others vary considerably.

Keywords: Climate change; marginal abatement cost curves; energy prices; computable general equilibrium model (search for similar items in EconPapers)
JEL-codes: C68 D58 F18 Q41 (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (104)

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https://www.econstor.eu/bitstream/10419/3775/1/Kle ... l_Abatement_2006.pdf (application/pdf)

Related works:
Journal Article: Marginal abatement cost curves in general equilibrium: The influence of world energy prices (2006)
Working Paper: Marginal Abatement Cost Curves in General Equilibrium: The Influence of World Energy Prices (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwkie:3775

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