Narrow Search
Search narrowed by
Last searches

Results for *

Displaying results 1 to 1 of 1.

  1. Worse off from reduced cost?
    the role of policy design under uncertain technological advancement
    Published: 2014
    Publisher:  Kiel Inst. for the World Economy, Kiel

    A simple model is used to illustrate the effects of a reduction in (marginal) abatement cost in a two country setting. It can be shown that a the country experiencing a cost reduction can actually be worse off. This holds true for a variety of... more

    Staats- und Universitätsbibliothek Bremen
    No inter-library loan
    Niedersächsische Staats- und Universitätsbibliothek Göttingen
    No inter-library loan
    Leibniz-Institut für Wirtschaftsforschung Halle, Bibliothek
    No inter-library loan
    Universitätsbibliothek Kiel, Zentralbibliothek
    EWP 1
    No inter-library loan
    ZBW - Leibniz-Informationszentrum Wirtschaft, Standort Kiel
    DS 3 (1926)
    No inter-library loan

     

    A simple model is used to illustrate the effects of a reduction in (marginal) abatement cost in a two country setting. It can be shown that a the country experiencing a cost reduction can actually be worse off. This holds true for a variety of quantity and price based emission policies. The most important channel is that a country with lower abatement costs engages in additional abatement effort for which it is not compensated. Under a quantity based policy with a given allocation, a seller of permits can also be negatively affected from a lower carbon price. We also argue that abatement cost shocks to renewable energy and carbon capture and storage (CCS) are different in terms of their effects on international energy markets. A shock to renewable energy reduces fossil fuel rents benefiting energy importers, while the opposite holds for a shock to CCS. The channels obtained in the theoretical model can be confirmed in a more complex global computable general equilibrium model. Some regions are indeed worse off from shock that lowers their abatement costs.

     

    Export to reference management software   RIS file
      BibTeX file
    Content information
    Source: Union catalogues
    Language: English
    Media type: Book
    Format: Online
    Other identifier:
    hdl: 10419/97315
    Series: Kiel working paper ; 1926
    Subjects: Climate policy; prices vs. quantities; renewable energy; CCS; technological uncertainty; CGE model
    Scope: Online-Ressource (24 S.), graph. Darst.