Responses to technology and taxes in a simulated world
A set of model experiments was performed to analyze the role of technology development on energy system responses to a uniform global carbon tax. Stabilization at a carbon dioxide concentration of 550 ppmv from the IMAGE 2.2 B2 baseline was shown to be technically feasible at limited cost based on a combination of improved energy efficiency, fuel switching and in the longer introduction of carbon-free options.
Technology development under baseline conditions, induced technology development by climate policies and technology inertia (based on their lifetimes) are identified as important factors in explaining the different responses under different conditions. For example, technology development, modeled as learning by doing, increases the global carbon reduction in 2030 from nearly 40 to 60% as a result of a 300 US$/tC tax. The relative importance of the three factors mentioned plays a major role in the optimal timing of abatement efforts. For long-term responses not only has technology development been shown to be important, but also other dynamic processes in the energy system, like depletion, which can sometimes work in the opposite direction.
Authors
Specifications
- Publication title
- Responses to technology and taxes in a simulated world
- Publication date
- 20 December 2004
- Publication type
- Publication
- Magazine
- Energy Economics 2004; 26:579-601
- Product number
- 91372