Skip navigation
Skip navigation

Substitutability and the cost of climate mitigation policy

Lu, Yingying; Stern, David Ian

Description

We explore how and by how much assumptions about elasticities of substitution affect estimates of the cost of GHG emissions reduction policies in computable general equilibrium (CGE) models using G-Cubed, an intertemporal CGE model, to carry out a sensitivity and factor decomposition analysis. The results suggest that the average abatement cost rises non-linearly as elasticities are reduced. Substitution elasticities between capital, labor, energy and materials in production have a larger...[Show more]

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
URI: http://hdl.handle.net/1885/12619
Source: Energy Procedia 61 (2014): 1622 - 1625
DOI: 10.1016/j.egypro.2014.12.309

Download

File Description SizeFormat Image
Lu & Stern Substitutability and the cost of climate 2014.pdf260.72 kBAdobe PDFThumbnail


Items in Open Research are protected by copyright, with all rights reserved, unless otherwise indicated.

Updated:  20 July 2017/ Responsible Officer:  University Librarian/ Page Contact:  Library Systems & Web Coordinator