Joint Global Change Research Institute
Joint Global Change Research Institute: A Collaboration of the Pacific Northwest National Laboratory and the University of Maryland
Joint Global Change Research Institute: A Collaboration of the Pacific Northwest National Laboratory and the University of Maryland
PNNL
UMD
Economic Comparison of Greenhouse Gas Mitigation Options in Germany
Authored by K Schumacher, Ronald D Sands
Abstract:
In emissions mitigation scenarios, one can think of five classes of greenhouse gas mitigation options: improvements in energy efficiency, fuel switching, introduction of CO2 capture and storage (CCS) with electric generating technologies, reductions in emissions of non-CO2 greenhouse gases, and terrestrial mitigation options. These options vary by cost, timing, and our ability to represent them in an economic analysis. Our objective is to provide a balanced analysis of four of these five classes, across a variety of carbon policy scenarios, for Germany. No single model available to us can simulate all of the relevant activities and processes needed to assess these mitigation options. Our approach is to use a computable general equilibrium (CGE) economic model as a core model and integrating tool. Specifically, we use the Second Generation Model (SGM; Edmonds et al., 2004; Sands, 2004), an economy-wide computable general equilibrium model that embodies energy and other non-agricultural GHG mitigation possibilities. Energy efficiency options are represented in the standard CGE format, where non-energy inputs substitute for energy inputs within economic production functions, or system of consumer demand equations, as the price of energy increases relative to other goods. The electric power sector provides substantial opportunities for fuel switching and the deployment of advanced electricity generating technologies in both a projected baseline and in alternative carbon policy scenarios. Opportunities for reductions in emissions of the non-CO2 gases; methane, nitrous oxide, and the F-gases; are handled differently. Here, we use exogenous projections and marginal abatement cost curves derived from an Energy Modeling Forum study. We do not try to include terrestrial mitigation options in this study. This would require information from an agriculture and forestry model similar to FASOMGHG, which presently has coverage only for the United States.
Schumacher K, RD Sands. 2005. "Economic Comparison of Greenhouse Gas Mitigation Options in Germany."