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A clean energy standard (CES) is a potential policy alternative to reduce carbon emissions in the electric sector. We analyze this policy under a range of technological assumptions, expanding on the Energy Modeling Forum (EMF) 24 study scenarios, using a new modeling tool, US-REGEN. We describe three innovative features of the model: treatment of spatial and temporal variability of renewable resources, cost-of-service electric sector pricing, and explicit representation of energy end-use specific capital. We find that varying technology assumptions results in vastly different futures, with large contrasts in the distribution and scale of inter-regional financial flows, and in the generation mix. We explore regional differences in how the costs of CES credits are passed through with cost-of-service vs. competitive pricing. Finally, we compare the CES to an economy-wide emissions cap. We find that although the two policies result in a similar generation mix, price and electricity end-use results differ. [ABSTRACT FROM AUTHOR]

The Energy Modeling Forum 24 study included a set of policy scenarios designed to compare economy wide market-based and sectoral regulatory approaches of potential U.S. climate policy. Models from seven teams participated in this part of the study assessing economy-wide cap-and-trade climate policy and sectoral policies in the transportation and electric sector in terms of potential greenhouse gas emissions reductions, economic cost, and energy systems implications. This paper presents an overview of the results from the U.S. policy scenarios, and provides insights into the comparison of results from the participating models. In particular, various metrics were used to compare the model results including allowance price, the efficient frontier, consumption loss, GDP loss, and equivalent variation. We find that the choice of economic metric is an important factor in the comparison of model results. Among the insights, we note that the carbon price should cautiously be considered when other non-cap sectoral policies affecting emissions are assumed in tandem. We also find that a transportation sector policy is consistently shown to be inefficient compared to an economy-wide capand-trade policy with a comparable level of emissions reductions. [ABSTRACT FROM AUTHOR]

Over the coming decades, the cost of U.S. climate change policy likely will be comparable to the total cost of all existing environmental regulation--perhaps 1-2 percent of national income. In order to avoid higher costs, policy efforts should create incentives for firms and individuals to pursue the cheapest climate change mitigation options over time, among all sectors, across national borders, and in the face of significant uncertainty. Well-designed national greenhouse gas mitigation policies can serve as the foundation for global efforts and as an example for emerging and developing countries. We present six key policy design issues that will determine the costs, cost-effectiveness, and distributional impacts of domestic climate policy: program scope, cost containment, offsets, revenues and allowance allocation, competitiveness, and R&D policy. We synthesize the literature on these design features, review the implications for the ongoing policy debate, and identify outstanding research questions that can inform policy development. [ABSTRACT FROM AUTHOR]

Current climate policies are based on the use of Global Warming Potentials (GWPs) to compare emissions of various greenhouse gases. Yet, from an economic point of view, more efficient methods exist. We compare the potential costs of implementing some long-term goal for stabilization of the climate in three cases: Reduce CO2 emissions only, reduce emissions of the four greenhouse gases CO2, CH4, N2O and SF6 using the standard IPCC GWPs and reduce emissions of the same four gases with efficient and flexible, time dependent metrics. A multi-gas approach with GWPs reduces the costs by 8 percent when compared with CO2 reductions only, whereas the costs may be reduced by an additional 2 percent if using flexible metrics. If compared with the use of GWPs, we find that efficient weights increase the cost savings of including non-CO2 gases in climate policy by 15-40%, depending on the stabilization goal. [ABSTRACT FROM AUTHOR]

First steps toward a broad climate agreement, such as the Kyoto Protocol, have focused on less than global geographic coverage. We consider instead a policy that is less comprehensive in term of greenhouse gases (GHGs), including only the non-CO2 GHGs, but is geographically comprehensive. Abating non-CO2 GHGs may be seen as less of a threat to economic development and therefore it may be possible to involve developing countries in such a policy even though they have resisted limits on CO2 emissions. The policy we consider involves a GHG price of about $15 per ton carbon-equivalent (tce) levied only on the non-CO2 GHGs and held at that level through the century. We estimate that such a policy would reduce the global mean surface temperature in 2100 by about 0.55° C; if only methane is covered that alone would achieve a reduction of 0.3° to 0.4° C. We estimate the Kyoto Protocol in its current form would achieve a 0.25° C reduction in 2100 if Parties to it maintained it as is through the century. Furthermore, we estimate the costs of the non-CO2 policies to be a small fraction of the Kyoto policy. Whether as a next step to expand the Kyoto Protocol, or as a separate initiative running parallel to it, the world could well make substantial progress on limiting climate change by pursuing an agreement to abate the low cost non-CO2 GHGs. The results suggest that it would be useful to proceed on global abatement of non-CO2 GHGs so that lack of progress on negotiations to limit CO2 does not allow these abatement opportunities to slip away. [ABSTRACT FROM AUTHOR]

When conducting a multi-gas analysis, there are distinct advantages in moving from concentrations to radiative forcing. With the former, it is customary to use Global Warming Potentials (GWPs) for making tradeoffs among greenhouse gases. A number of studies have shown the arbitrariness of this approach and have argued that tradeoffs should be based on the contribution of each gas to achieving a particular target. Focusing on radiative forcing bypasses the need to rely on GWPs and provides for tradeoffs among gases based on their relative value. [ABSTRACT FROM AUTHOR]

In this paper we examine the interaction between technology policy and its impact on the full basket of worldwide greenhouse emissions over the 21st century. The heart of the analysis is the Argonne National Laboratory's AMIGA Modeling System, a technology rich, general equilibrium model that (depending on data availability) characterizes as many as 200 sectors of the regional economies. We suggest in this paper that technologies and technology policies exist which could reduce carbon emissions enough to achieve stabilization targets at relatively modest costs given the size of the world economy. This can be accomplished largely through harnessing market forces and creating incentives with the use of efficient prices on greenhouse gas emissions, combined with complementary programs and policies to reduce market failures and to promote new technology improvements and investments. [ABSTRACT FROM AUTHOR]

To address the problem of human induced climate change effectively, climate policy must embody the principles of economic efficiency, environmental effectiveness and equity. In this paper it is shown that such a climate change policy should include a broad coverage of major greenhouse gases and sources. ABARE's Global Trade and Environment Model (GTEM) is used to analyse the economic impact of meeting a radiative forcing target using policies that focus on carbon dioxide emissions only and policies that focus on all major greenhouse gases and sources, including land use change and forestry emissions. It is projected that incorporating non-carbon dioxide gases into climate change policy reduces the economic adjustment cost significantly. Broadening the sources of carbon dioxide to include land use change and forestry emissions further reduces the economic adjustment costs. [ABSTRACT FROM AUTHOR]

This paper examines the role of climate forcing agents other than carbon dioxide using the MiniCAM integrated assessment model for both no-climate-policy and policy emissions scenarios. Non-CO2 greenhouse-gas forcing is dominated by methane and tropospheric ozone. Assumptions about the prevalence of methane recovery and local air pollution controls in the no-policy cases are a critical determinant of methane and ozone-precursor emissions. When these factors are considered, emissions are substantially reduced relative to earlier estimates. This reduces their potential as climate mitigation agents through specific climate policies. Nevertheless, the addition of non-CO2 greenhouse gas and ozone precursor abatement options significantly reduces mitigation costs in the first half of the 21st century (by up to 40%) compared to the case where only CO2 abatement options are pursued. While the influences of aerosols are small by the end of the century, there is a significant interaction in the early 21st century between policies to reduce CO2 emissions and SO2 emissions, even in the presence of SO2-related pollution control policies. The attendant reduced aerosol cooling can more than offset the reduction in warming that accrues from reduced CO2. When non-CO2 gases are included in the policy, the net effect is that global-mean climate change to 2050 is practically unaffected by mitigation policy. [ABSTRACT FROM AUTHOR]

I analyse the costs of policies aimed at stabilising global climate change. I show that abatement of all major greenhouse gases is important to the costs of climate policies and that flexible reduction of methane and other non-CO2 gases may reduce costs significantly. The non-CO2 gases offer many low-cost abatement options and this reduces the need for abatement of CO2 to stabilise climate change. Multi-gas flexibility may be important if climate policies reflect not only long-term stabilisation, but also the rate at which the climate changes, as the latter may require large reductions in emissions in the short-term. [ABSTRACT FROM AUTHOR]

Presents a study which examined market power in international carbon emissions trading. Outline of trading situations likely to be faced by countries engaging in intergovernmental carbon emission quota trade; Factors which affect the ability of large countries to exert market power; Discussion on cost-effectiveness in international climate treaties aiming at substantial reductions of greenhouse gas emissions.

The article discusses various reports published within the issue, including one on climate policy and multi-greenhouse gas mitigation.