8. Global, Regional, and National Costs and Ancillary Benefits of Mitigation
Contents
Executive Summary
8.1 Introduction
8.1.1 Summary of Mitigation Cost Analysis in the Second
Assessment Report
8.1.2 Progress since the Second Assessment Report
8.1.3 Coverage
8.2 Impacts of Domestic Policies
8.2.1 Gross Aggregated Expenditures in Greenhouse Gas
Abatements in Technology-rich Models
8.2.1.1 National and Regional Cost Studies Assuming Large
Potentials for Efficiency Gains (the Impact of No Regrets or Non-price Policies)
8.2.1.2 Bottom-up Costs Resulting from Carbon Pricing
(Developed Countries)
8.2.1.2.1 Cost Discrepancies that Result from
Specific Country Conditions
8.2.1.2.2 Discrepancies in Results Due to Modelling
and Scenario Assumptions
8.2.1.3 Country Studies for Developing Countries
8.2.1.4 Common Messages from Bottom-up Results
8.2.2 Domestic Policy Instruments and Net Mitigation Costs
8.2.2.1 Aggregate Assessment of Revenue-raising
Instruments
8.2.2.1.1 Net Economic Costs under Lump-sum Recycling
8.2.2.1.2 Carbon Taxes and Reducing Payroll Taxes
8.2.2.1.3 Other Forms of Taxes Reduction
8.2.2.1.4 Conclusions: Interest and Limits of Aggregate
Analysis
8.2.2.2 Mitigating Sectoral Implications:
8.2.2.2.1 Tax Exemption
8.2.2.2.2 Tax Differentiation
8.2.2.2.3 Compensating or Subsidizing Mitigation
Measures
8.2.2.2.4 Free Allocation of Emissions Permits
8.2.2.2.5 Conclusions
8.2.2.3 The Distributional Effects of Mitigation
8.2.3 The Impact of Considering Multiple Gases and Carbon
Sinks
8.2.4 Ancillary Benefits
8.2.4.1 The Evaluation of the Ancillary Public Health
Impacts
8.2.4.2 Summarizing the Ancillary Benefit Estimates
8.2.4.2.1 Presentation of the Studies
8.2.4.2.2 Evaluation of the Studies
8.2.4.3 Why Do Studies for the Same Country Differ?
8.2.4.4 Conclusions
8.3 Interface between Domestic Policies and International
Regimes
8.3.1 International Emissions Quota Trading Regimes
8.3.1.1 Where Flexibility
8.3.1.2 Impacts of Caps on the Use of Trading
8.3.1.3 The Double Bubble
8.3.2 Spillover Effects: Economic Effects of Measures in
Countries on Other Countries
8.3.2.1 Impact of Emissions Trading
8.3.2.2 Effects of Emission Leakage on Global Emissions
Pathways
8.3.2.3 Effects of Possible Organization of Petroleum
Exporting Countries Response
8.3.2.4 Technological Transfers and Positive Spillovers
8.4 Social, Environmental, and Economic Impacts of Alternative
Pathways for Meeting a Range of Concentration Stabilization Pathways
8.4.1 Alternative Pathways for Stabilization Concentrations
8.4.2 Studies of the Costs of Alternative Pathways for
Stabilizing Concentrations at a Given Level
8.4.3 Economywide Impact of CO2 Stabilization
in the Post-SRES Scenarios
8.4.4 Reasons Why Energy-economy Models Tend to Favour Gradual
Departure from Baseline in the Near-term
8.4.5 Critical Factors Affecting the Timing of Emissions
Reductions: The Role of Technological Change
8.4.5.1 ITC through Dedicated R&D
8.4.5.2 Learning by Doing (LBD)
8.4.5.3 The Distinction Between Action and Abatement
References
Co-ordinating Lead Authors:
JEAN-CHARLES HOURCADE (FRANCE), PRIYADARSHI SHUKLA (INDIA)
Lead Authors:
Luis Cifuentes (Chile), Devra Davis (USA), Jae Edmonds (USA), Brian Fisher (Australia),
Emeric Fortin (France), Alexander Golub (Russian Federation), Olav Hohmeyer
(Germany), Alan Krupnick (USA), Snorre Kverndokk (Norway), Richard Loulou (Canada),
Richard Richels (USA), Hector Segenovic (Argentina), Kenji Yamaji (Japan)
Contributing Authors:
Christoph Boehringer (Germany), Knut Einar Rosendahl (Norway), John Reilly (USA),
Kirsten Halsnæs (Denmark), Ferenc Toth (Germany), ZhongXiang Zhang (Netherlands)
Review Editors:
Lorents Lorentsen (Norway), Oyvind Christopherson (Norway), Mordechai Shechter
(Israel)
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