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Where is it Cheapest to Cut Carbon Emissions? AgEcon
Stern, David I.; Lambie, Neil Ross.
The relative cost of carbon emissions reductions across regions depends on whether we measure cost by marginal or total cost, private or economy-wide cost, and using market or purchasing power parity exchange rates. If all countries are on the same marginal carbon abatement cost curve then lower marginal costs of abatement are associated with higher energy intensities and higher total costs of abatement in achieving proportional cuts in emissions, equal emissions per capita, or common global carbon price targets. We test this conjecture using the results of the GTEM computable general equilibrium model as presented in the climate change economics review conducted by the Australian Treasury Department. Rankings of countries by costs do differ depending on...
Tipo: Journal Article Palavras-chave: Climate change; Costs; Developing countries; Computable general equilibrium; Environmental Economics and Policy; Q52; Q54.
Ano: 2010 URL: http://purl.umn.edu/95058
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The role of real options analysis in the design of a greenhouse gas emissions trading scheme AgEcon
Lambie, Neil Ross.
Analysing the effect of a greenhouse gas emissions trading scheme (ETS) on energy-intensive industries using a simple model of the long-run equilibrium fails to fully capture the design implications of a scheme. When we allow for imperfect market structures and uncertainty, it is more useful to focus on how an industry is affected by the scheme’s design in moving to its long-run equilibrium. A real options modelling approach that analyses how firms in these industries are likely to respond to an ETS through their investment behaviour is proposed as a more insightful method for public policy analysis.
Tipo: Conference Paper or Presentation Palavras-chave: Climate change policy; Emissions trading; Investment; Real options; Environmental Economics and Policy.
Ano: 2009 URL: http://purl.umn.edu/47626
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