The role of technological availability for the distributive impacts of climate change mitigation policy |
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Authors: | Michael Lü ken,Ottmar EdenhoferBrigitte Knopf,Marian LeimbachGunnar Luderer,Nico Bauer |
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Affiliation: | Potsdam Institute for Climate Impact Research (PIK), Research Domain Sustainable Solutions, PO Box 60 12 03, 14412 Potsdam, Germany |
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Abstract: | The impacts of the availability of low-carbon technologies on the regional distribution of mitigation costs are analyzed in a global multi-regional integrated assessment model. Three effects on regional consumption losses are distinguished: domestic measures, trade of fossil energy carriers and trade of emission permits. Key results are: (i) GDP losses and a redirection of investments in the energy system towards capital-intensive technologies are major contributions to regional consumption losses. (ii) A devaluation of tradable fossil energy endowments contributes largely to the mitigation costs of fossil fuel exporters. (iii) In case of reduced availability of low-carbon technologies, the permit market volume and associated monetary redistributions increase. The results suggest that the availability of a broad portfolio of low-carbon technologies could facilitate negotiations on the permit allocation scheme in a global cap-and-trade system. |
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Keywords: | Climate policy Welfare redistribution Energy&ndash economy&ndash environment model |
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