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Environmental and Resource Economics

, Volume 51, Issue 3, pp 353–369 | Cite as

Timing of Mitigation and Technology Availability in Achieving a Low-Carbon World

  • Valentina Bosetti
  • Carlo Carraro
  • Massimo Tavoni
Article

Abstract

This paper analyzes the economic and investment implications of a series of climate mitigation scenarios, characterized by different levels of ambition for long-term stabilization goals and transitional pathways. Results indicate that although milder climate objectives can be achieved at moderate costs, stringent stabilization paths, compatible with the 2°C target, might require significant economic resources. Innovation and technology are shown to be able to mitigate, but not structurally alter, this trade-off. Technologies that allow capturing CO2 from the atmosphere are shown to be important for expanding the feasibility space of stringent climate policies, though only if deployed at a scale which would represent a tremendous challenge. In general, the analysis indicates that the timing of mitigation is an important factor of cost containment, with early action being desirable. It also elaborates on the set of mitigation strategies and policies that would be required to achieve climate protection at maximum efficiency.

Keywords

Climate policy Stabilization costs 

JEL Classification

C72 H23 Q25 Q28 

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Copyright information

© Springer Science+Business Media B.V. 2011

Authors and Affiliations

  • Valentina Bosetti
    • 1
  • Carlo Carraro
    • 2
  • Massimo Tavoni
    • 3
  1. 1.Fondazione Eni Enrico Mattei, CESifo and CMCCMilanItaly
  2. 2.Fondazione Eni Enrico Mattei, University of Venice, CEPR, CESifo and CMCCVeniceItaly
  3. 3.Fondazione Eni Enrico Mattei and CMCCMilanItaly

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