The scope of energy system modelling is to support policy-makers in the definition an strategy. Energy models typically provide one single optimal solution. On contrary, presenting results form a set or sub-optimal alternatives improves transparency towards policy makers. A method achieve this marginal abatement cost curve. It estimates relationship between potential reduction CO 2 emissions an...

Many countries have adopted or are considering incentive approaches to environmental regulation, such as tradable permit schemes to control pollution. Regulators influence the success of tradable permit programs by their choice of market rules and permit allocation mechanisms. This paper uses laboratory experiments to study how the transaction costs incurred by participants interact with the in...

This paper develops a model to examine the impacts of uncertainty about crop production and irreversibility of program participation on determining land rental payments and least-cost land retirement targeting in the Conservation Reserve Enhancement Program. Results show that under risk aversion only, the marginal cost of abatement and the average land rental payment are less than those under r...

I study the optimal design of marketable permit systems to regulate various pollutants (e.g., air pollution in urban areas) when the regulator lives in a real world of imperfect information and incomplete enforcement. I show that the regulator should have pollution markets integrated through optimal exchange rates when the marginal-abatement cost curves in the different markets are steeper than...

Countries with low marginal costs of abating carbon emissions may have high total costs, and vice versa, for a given climate mitigation policy. This may help to explain different countries' policy stances on climate mitigation. We hypothesize that, under a common percentage cut in emissions intensity relative to business as usual (BAU), countries with higher BAU emission intensities have lower ...

This paper employs analytical and numerical general equilibrium models to examine the costs of achieving pollution reductions under a range of environmental policy instruments in a second-best setting with pre-existing factor taxes. We compare the costs and overall efficiency impacts of emissions taxes, emissions quotas, fuels taxes, performance standards, and mandated technologies, and explore...

Since the study of Ellerman and Decaux (1998) marginal abatement cost curves (MACCs) have become one of the favorite instruments to analyze the impacts of the implementation of the Kyoto Protocol and emission trading. This paper shows that the MACC in one country depends via the link of world energy prices on the level of abatement in the rest of the world. The strength of the dependence is inf...

Abstract The economic impact of CO 2 emissions reduction requirements demands strategic planning to identify low-cost mitigation pathways from combinations the many available options. Different tools have been developed plan minimal cost taking into consideration various options such as capture, utilization, and sequestration (CCUS), shifting fossil renewable energy sources, well adopting secto...

The paper estimates the shadow prices of SO2 emissions for 36 Czech industry sectors during the period 2000-2008. A convex nonparametric least squares quadratic optimization formulated by Mekaroonreung & Johnson (2012) is applied to measure technical efficiency and to jointly estimate the shadow prices of SO2 emissions. The weighted average shadow price ranges between 360€ and 1,316€ per ton of...