Substitutability and the Cost of Climate Mitigation Policy
We explore how and by how much the values of elasticities of substitution affect estimates of the cost of emissions reduction policies in computable general equilibrium (CGE) models. We use G-Cubed, an intertemporal CGE model, to carry out a sensitivity and factor decomposition analysis. The decomposition analysis determines the contributions of changes in average abatement costs and changes in baseline emissions to the change in total mitigation costs. The latter has not previously been...[Show more]
|Collections||ANU Research Publications|
|Source:||Environmental and Resource Economics|
|LuStern2016.pdf||1.48 MB||Adobe PDF|
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