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Carbon abatement costs: an integrated approach for India*

Published online by Cambridge University Press:  31 July 2008

Sujata Gupta  and
Stephen G. Hall
Sujata Gupta
Affiliation:
Tata Energy Research Institute, India Habitat Place, Lodi Road, New Delhi 110003, India
Stephen G. Hall
Affiliation:
London Business School, Sussex Place, Regent's Park, London, NW1 4SA
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Abstract

Economic models for assessing costs of greenhouse gas abatement can be classified as macroeconomic (top-down) models or micro (bottom-up) models. As yet little attention has been focused on the modelling of developing countries. This paper proposes a methodology for integrating the two approaches and illustrates it with the example of India. The results show that a carbon tax would have limited effectiveness in controlling carbon emissions. Investing carbon tax revenues in carbon-abating technologies can give substantial carbon savings. The costs of carbon abatement using the integrated model are higher than those predicted by other global models with India as a sub-region.

Type
Theory and Applications
Information
Environment and Development Economics , Volume 1 , Issue 1 , February 1996 , pp. 41 - 63
Copyright
Copyright © 1996, Cambridge University Press

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