Abstract
A cost-efficient way to allocate carbon dioxide (CO2) emission reductions among countries or regions is to harmonise their marginal reduction costs. This could be achieved by a market of emission reduction units (ERUs). To model such a market, we use a multi-regional MARKAL-MACRO model. It gives insights into the consequences of co-ordinating CO2 abatement on regional energy systems and economies. As a numerical application, we assess the establishment of a market of ERUs among three European countries for curbing their CO2 emissions.
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Bahn, O., Barreto, L. & Kypreos, S. Modelling and assessing inter-regional trade of CO2 emission reduction units. Environmental Modeling & Assessment 6, 173–182 (2001). https://doi.org/10.1023/A:1011914015053
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DOI: https://doi.org/10.1023/A:1011914015053