Long-Run Energy-Technology Choices, CO sub 2 Abatement Policies, and CO sub 2 Shadow Prices

摘要

This study advances a particular research methodology in which existing knowledge of CO sub 2 environmental quality and damage functions is embedded in a long-run growth model that permits substitution among energy technologies. The authors illustrate a decentralized abatement policy in which the shadow price of constraining CO sub 2 concentrations is utilized to estimate an optimal tax rate on CO sub 2 polluting technologies. A quantitative implementation of this approach is carried out based on existing energy-resource reserve and technology cost data, and on their appraisal of preliminary environmental quality and damage data. (ERA citation 08:047306)