Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73955
Authors: 
Lessmann, Kai
Edenhofer, Ottmar
Bauer, Nico
Year of Publication: 
2005
Series/Report no.: 
Nota di Lavoro, Fondazione Eni Enrico Mattei 150.2005
Abstract: 
MIND is a hybrid model incorporating several energy related sectors in an endogenous growth model of the world economy. This model structure allows a better understanding of the linkages between the energy sectors and the macro-economic environment. We perform a sensitivity analysis and parameter studies to improve the understanding of the economic mechanisms underlying opportunity costs and the optimal mix of mitigation options. Parameters representing technological change that permeates the entire economy have a strong impact on both the opportunity costs of climate protection and on the optimal mitigation strategies, e.g. parameters in the macro-economic environment and in the extraction sector. Sector-specific energy technology parameters change the portfolio of mitigation options but have only modest effects on opportunity costs, e.g. learning rate of the renewable energy technologies. We conclude that feedback loops between the macro-economy and the energy sectors are crucial for the determination of opportunity costs and mitigation strategies.
Subjects: 
Endogenous technological change
Climate change mitigation costs
Integrated assessment
Growth model
Energy sector
Integrated assessment
JEL: 
O41
Q40
Q43
Q55
C61
D99
Document Type: 
Working Paper

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