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Comparison of Climate Policies in the ENTICE-BR Model

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  • David Popp
Abstract
This paper uses the ENTICE-BR model to study the effects of various climate stabilization policies. Because the ENTICE-BR model includes benefits from reduced climate damages, it is possible to calculate the net economic impact of each policy. In general, only the least restrictive concentration limit is welfare enhancing. While the policies are welfare enhancing in simulations using optimistic assumptions about the potential of the backstop energy technology, such assumptions mean that the backstop is also used in the no-policy base case, so that climate change itself is less of a problem. Finally, assumptions about the nature of R&D markets are important. Removing the assumption of partial crowding out from energy R&D nearly doubles the gains from policy-induced energy R&D.

Suggested Citation

  • David Popp, 2006. "Comparison of Climate Policies in the ENTICE-BR Model," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 163-174.
    • Handle: RePEc:aen:journl:2006se-a07
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    Citations

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    Cited by:

    1. Grimaud, André & Lafforgue, Gilles & Magné, Bertrand, 2007. "Innovation Markets in the Policy Appraisal of Climate Change Mitigation," IDEI Working Papers 481, Institut d'Économie Industrielle (IDEI), Toulouse.
    2. Samuel Fankhauser & Cameron Hepburn & Jisung Park, 2010. "Combining Multiple Climate Policy Instruments: How Not To Do It," Climate Change Economics (CCE), World Scientific Publishing Co. Pte. Ltd., vol. 1(03), pages 209-225.
    3. Alexander Golub & Oleg Lugovoy & Anil Markandya & Ramon Arigoni Ortiz & James Wang, 2013. "Regional IAM: analysis of risk-adjusted costs and benefits of climate policies," Working Papers 2013-06, BC3.
    4. Elizabeth Stanton, 2011. "Negishi welfare weights in integrated assessment models: the mathematics of global inequality," Climatic Change, Springer, vol. 107(3), pages 417-432, August.
    5. Kuik, Onno & Brander, Luke & Tol, Richard S.J., 2009. "Marginal abatement costs of greenhouse gas emissions: A meta-analysis," Energy Policy, Elsevier, vol. 37(4), pages 1395-1403, April.
    6. Grimaud, André & Lafforgue, Gilles & Magné, Bertrand, 2011. "Climate change mitigation options and directed technical change: A decentralized equilibrium analysis," Resource and Energy Economics, Elsevier, vol. 33(4), pages 938-962.
    7. Duan, Hong-Bo & Fan, Ying & Zhu, Lei, 2013. "What’s the most cost-effective policy of CO2 targeted reduction: An application of aggregated economic technological model with CCS?," Applied Energy, Elsevier, vol. 112(C), pages 866-875.
    8. GRIMAUD André & LAFFORGUE Gilles & MAGNE Bertrand, 2007. "Economic growth and Climate change in a decentralized Economy: A Theoretical and Empirical Approach," LERNA Working Papers 07.04.225, LERNA, University of Toulouse.
    9. André Grimaud & Gilles Lafforgue, 2008. "Climate change mitigation policies : Are R&D subsidies preferable to a carbon tax ?," Revue d'économie politique, Dalloz, vol. 118(6), pages 915-940.
    10. Rick Baker & Andrew Barker & Alan Johnston & Michael Kohlhaas, 2008. "The Stern Review: an assessment of its methodology," Staff Working Papers 0801, Productivity Commission, Government of Australia.
    11. Jean-Charles Hourcade & Michael J. Grubb & Aurélie Méjean, 2015. "The 'Dark Matter' in the Search for Sustainable Growth: Energy, Innovation and the Financially Paradoxical Role of Climate Confidence," Post-Print hal-01646242, HAL.
    12. Chakravorty, Ujjayant & Leach, Andrew & Moreaux, Michel, 2011. "Would hotelling kill the electric car?," Journal of Environmental Economics and Management, Elsevier, vol. 61(3), pages 281-296, May.
    13. GRIMAUD André & LAFFORGUE Gilles, 2008. "Second Best Analysis in a General Equilibrium Climate Change Model," LERNA Working Papers 08.11.255, LERNA, University of Toulouse.
    14. Nicholas Howarth, 2011. "Clean Energy Technology and the Role of Non-Carbon Price-Based Policy: An Evolutionary Economics Perspective," European Planning Studies, Taylor & Francis Journals, vol. 20(5), pages 871-891, October.
    15. Grimaud, André & Lafforgue, Gilles & Magné, Bertrand, 2008. "Decentralized Equilibrium Analysis in a Growth Model with Directed Technical Change and Climate Change Mitigation," IDEI Working Papers 537, Institut d'Économie Industrielle (IDEI), Toulouse.

    More about this item

    JEL classification:

    • F0 - International Economics - - General

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