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GTAP Resource #6811

"Modelling the potential to abate greenhouse gases from agriculture using detailed abatement technologies in a CGE model"
by Jensbye, Laerke, Francesco Clora and Wusheng Yu

In this paper, we incorporate both the potential production shift from differences in emission reduction ambitions and the influence of differential technological reduction potentials, to obtain a more realistic understanding of the resulting production changes.

We propose an approach to introduce into a CGE model endogenous emission intensity reduction that mimics estimated MACCs, which captures costs and abatement potentials of currently available technologies. Matrixes including the price, emission abatement and availability of technologies linked to all emission flows are set up outside of the CGE model, based on the US EPA MACC estimates for 2030 (US EPA, 2019). Using these data, we insert a set of equations into the CGE model, specifying the endogenous adoption of different technologies by comparing the costs of the technologies and the levels of the carbon prices. This way, the implementation of each technology is determined based on the net cost of its inclusion, which has been found to be the main decision-making factor for livestock producers (Hristov et al., 2013). We reveal the implications of using this new approach on the estimated costs of de-carbonizing the agriculture sector and production scales and patterns through a set of model simulations.

Resource Details (Export Citation) GTAP Keywords
Category: 2023 Conference Paper
Status: Not published
By/In: Presented during the 26th Annual Conference on Global Economic Analysis (Bordeaux, France)
Date: 2023
Created: Jensbye, L. (3/31/2023)
Updated: Jensbye, L. (3/31/2023)
Visits: 276
- Dynamic modeling
- Model extension/development
- Climate change policy
- Technological change

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