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

By G. Klepper, Sonja Peterson. 2006

199 citations recorded by the source corpus.

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.

Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/c1686ad089337eecbf23c3ae48e55f3ec3b3e31d

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. Limin Du
2. Aoife Hanley
3. Chu Wei
4. Liwei Fan
5. Peng Zhou
6. Xun Zhou
7. S. Paltsev
8. J. Reilly

In Renewable Energy, Sustainability and the Environment

1. Chu Wei
2. Limin Du
3. Aoife Hanley
4. S. Paltsev
5. J. Reilly
6. Peng Zhou
7. Liwei Fan
8. Jennifer Morris

Citations in the corpus

• The Opportunity Cost of Land Use and the Global Potential for Greenhouse Gas Mitigation in Agriculture and Forestry (2006, background): “Klepper and Peterson (2006) find such an effect for changes in the price of oil.”
• Estimating the marginal abatement cost curve of CO2 emissions in China: Provincial panel data analysis (2015, methodology): “Another is economy-oriented top-down models, such as Computable General Equilibrium (CGE) models (De Cara and Jayet, 2011; Klepper and Peterson, 2006).”
• Marginal Abatement Costs and Marginal Welfare Costs for Greenhouse Gas Emissions Reductions: Results from the EPPA Model (2011, methodology): “In Section 3, we also test the stability of MACs to policies abroad following protocols developed by Klepper and Peterson [3].”
• Addressing future trade-offs between biodiversity and cropland expansion to improve food security (2016, methodology): “…model has been applied to analyse international climate policies (e.g. Springer 1998; Klepper and Peterson 2006a), environmental policies (e.g. Weitzel et al. 2012), energy policies (e.g. Klepper and Peterson 2006b), and agricultural and biofuel policies (e.g. Kretschmer et al. 2009) among others.”
• Marginal CO2 abatement costs: Findings from alternative shadow price estimates for Shanghai industrial sectors (2015, background): “Klepper and Peterson (2006) applied computational general equilibrium model to drive the MAC curve of CO2 emissions by considering the relationship between global abatement level and energy price.”