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Abundant low-cost natural gas and deep GHG emissions reductions for the United States

Affiliation:	1. Key Laboratory of Poyang Lake Wetland and Watershed Research, Ministry of Education, Jiangxi Normal University, Nanchang 330022, China;2. Poyang Lake Research Center, Jiangxi Academy of Sciences, Nanchang 330096, China;3. State Key Laboratory of Lake Science and Environment, Nanjing Institute of Geography and Limnology, Chinese Academy of Sciences, Nanjing 210008, China;4. Key Laboratory of Watershed Science and Health of Zhejiang Province, School of Environmental Science and Public Health, Wenzhou Medical University, Wenzhou 325035, China;1. School of Energy and Power Engineering, Beihang University (BUAA), Beijing 100191, China;2. Measurement Science and Standards, National Research Council of Canada, 1200 Montreal Road, Ottawa, Ontario K1A 0R6, Canada;3. Aix-Marseille Université, CNRS, IUSTI UMR 7343, 5 rue E. Fermi, 13013 Marseille, France

Abstract:	This paper analyzes the implications of the natural gas revolution on the US’ ability to achieve deep GHG emissions reductions of 80% below 2005 levels by 2050. It uses a hybrid energy-economy model to test how prevailing low US natural gas prices influence the magnitude of the required carbon price needed to achieve this target. While the paper finds in general that lower gas prices resulting from plentiful gas necessitate a higher carbon price to achieve this target, informing firms and consumers in advance about the magnitude of the future carbon price can lower the necessary level.

Keywords:	Natural Gas Shale Gas Climate Policy Hybrid Model Bridge Fuel
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