, Volume 21, Issue 3, pp 297-315

A non-linear model for estimating the cost of achieving emission reduction targets: The case of the U.S., China and India

Rent the article at a discount

Rent now

* Final gross prices may vary according to local VAT.

Get Access

Abstract

With the world talking about climate change, the United States (U.S.), China and India have announced their carbon emission reduction targets. For these three countries to achieve their targets, significant questions arise, such as what will be the annual emission reduction efforts to achieve those targets, how much it would cost and what would be the economic effects. This paper puts the carbon intensity reduction targets of China and India together with the absolute emission reduction target of the U.S. into the same non-linear model to quantitatively study the optimal emission control strategies and associated total cost for achieving those targets by the year 2020, and estimate and compare the minimized total costs of the three countries to reach their targets. Our results show that the total cost for the U.S. to achieve its emission reduction target is greater than those of China and India in terms of absolute amount. However, in terms of proportion of total cost to GDP, China and India’s ratios are significantly greater than that of the U.S., indicating that for the developing countries such as China and India, the achievement of emission reduction targets needs relatively greater effort.

This work is supported by National Natural Science Foundation of China under Grant No. 70825001, 71210005 and 71273253, and Chinese Academy of Sciences under Grant No. XDA05150700.
Lei Zhu is an Assistant Professor at the Center for Energy & Environmental Policy, Institute of Policy and Management, Chinese Academy of Sciences, China. His research field is energy investment evaluation and low carbon development.
Xiaobing Zhang is a Ph.D candidate at Department of Economics, University of Gothenburg, Sweden. His research field is optimization and environmental economics. And he is also a member at the Center for Energy & Environmental Policy, Institute of Policy and Management, Chinese Academy of Sciences, China.
Ying Fan is a Professor at the Center for Energy & Environmental Policy, Institute of Policy and Management, Chinese Academy of Sciences, China. Her research field is system engineering and energy policy. In 2004, she was a visiting scholar at Cornell University, USA.