TY - JOUR
T1 - Simulating emissions intensity targets with energy economic models
T2 - algorithm and application
AU - Cai, Yiyong
AU - Lu, Yingying
AU - Stegman, Alison
AU - Newth, David
N1 - Publisher Copyright:
© 2015, Springer Science+Business Media New York.
PY - 2017/8/1
Y1 - 2017/8/1
N2 - Pressure on developing economies to make quantifiable emissions reduction commitments has led to the introduction of intensity based emissions targets, where reductions in emissions are specified with reference to some measure of economic output. The Copenhagen commitments of China and India are two prominent examples. Intensity targets substantially increase the complexity of policy simulation and analysis, because a given emissions intensity target could be satisfied with a range of emissions and output combinations. Here, a simple algorithm, the Iterative Method, is proposed for an energy economic model to find a unique policy solution that achieves an emissions intensity target at minimum economic loss. We prove the mathematical properties of the algorithm, and compare its numerical performance with other methods’ in the existing literature.
AB - Pressure on developing economies to make quantifiable emissions reduction commitments has led to the introduction of intensity based emissions targets, where reductions in emissions are specified with reference to some measure of economic output. The Copenhagen commitments of China and India are two prominent examples. Intensity targets substantially increase the complexity of policy simulation and analysis, because a given emissions intensity target could be satisfied with a range of emissions and output combinations. Here, a simple algorithm, the Iterative Method, is proposed for an energy economic model to find a unique policy solution that achieves an emissions intensity target at minimum economic loss. We prove the mathematical properties of the algorithm, and compare its numerical performance with other methods’ in the existing literature.
KW - Climate policy
KW - Emissions intensity target
KW - Energy economic model
KW - Simulation
UR - http://www.scopus.com/inward/record.url?scp=84931430528&partnerID=8YFLogxK
U2 - 10.1007/s10479-015-1927-0
DO - 10.1007/s10479-015-1927-0
M3 - Article
SN - 0254-5330
VL - 255
SP - 141
EP - 155
JO - Annals of Operations Research
JF - Annals of Operations Research
IS - 1-2
ER -