Skip to main content
Log in

Methane Emission Reduction: An Application of FUND

  • Published:
Climatic Change Aims and scope Submit manuscript

Abstract

Methane is, after carbon dioxide, the most important anthropogenic greenhouse gas. Governments plan to abate methane emissions. A crude set of estimates of reduction costs is included in FUND, an integratedassessment model of climate change. In a cost-benefit analysis, methane emission reduction is found to be instrumental in controlling the optimal rate of climate change. In a cost-effectiveness analysis, methane emission reduction largely replaces carbon dioxide emission reduction. Methane emission reduction reinforces the case for international cooperation in climate policy, but complicates the efficient allocation of emission reduction efforts. Methane emission reduction at the short run does not help to achieve the ultimate objective of the Framework Convention on Climate Change.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Albritton, D. L., Derwent, R. G., Isaksen, I. S. A., Lal M., and Wuebbles, D. J.: 1994, ‘Trace Gas Radiative Forcing Indices’, in J. T. Houghton, L. G. Meiro Filho, J. P. Bruce, H. Lee, B. A. Callander, E. F. Haites, N. Harris, and K. Maskell (eds.), Climate Change 1994Radiative Forcing of Climate Change and An Evaluation of the IPCC IS92 Emission Scenarios, Cambridge University Press, Cambridge, pp. 205–246.

    Google Scholar 

  • Batjes, J. J. and Goldewijk, C. G. M.: 1994, The IMAGE 2 Hundred Year (1890–1990) Database of the Global Environment (HYDE), 410100082, RIVM, Bilthoven.

  • Blok, K. and de Jager, D.: 1994, ‘Effectiveness of Non–CO2 Greenhouse Gas Emission Technologies’, Environmental Monitoring and Assessment 31, 17–40.

    Google Scholar 

  • De Jager, D. and Blok, K.: 1993, Cost–Effectiveness of Emission Reducing Measures for Methane in the Netherlands, Ecofys Research and Consultancy, Utrecht.

    Google Scholar 

  • Fankhauser, S.: 1995, Valuing Climate ChangeThe Economics of the Greenhouse, EarthScan, London.

    Google Scholar 

  • Godal, O. and Fuglestvedt, J.: 2002, ‘Testing 100–Year Global Warming Potentials: Impacts on Compliance Costs and Abatement Profile’, Clim. Change 52, 93–127.

    Google Scholar 

  • Hammitt, J. K., Jain, A. K., Adams J. L., and Wuebbles, D. J.: 1996, ‘A Welfare–Based Index for Assessing Environmental Effects of Greenhouse–Gas Emissions’, Nature 381, 301–303.

    Google Scholar 

  • Hammitt, J. K., Lempert R. J., and Schlesinger M. E.: 1992, ‘A Sequential–Decision Strategy for Abating Climate Change’, Nature, 357, 315–318.

    Google Scholar 

  • Hayhoe, K., Jain, A., Kheshgi H., and Wuebbles D.: 2000, ‘Contribution of CH4 to Multi–Gas Emission Reduction Targets: The Impact of Atmospheric Chemistry on GWPs’, in J. van Ham, A. P. M. Baede, L. A. Meyer, and R. Ybema (eds.), Non–CO 2 Greenhouse Gases: Scientific Understanding, Control and Implementation, Kluwer Academic Publishers, Dordrecht.

    Google Scholar 

  • Hayhoe, K., Jain, A., Pitcher, H., MacCracken, C., Gibbs, M., Wuebbles, D., Harvey, R., and Kruger, D.: 1999, ‘Costs of Multigreenhouse Gas Reduction Targets for the U.S.A.’, Science 286, 905–906.

    Google Scholar 

  • Hogan, K. B. (ed.): 1993a, Options for Reducing Methane Emissions InternationallyVolume II: International Opportunities for Reducing Methane Emissions, EPA 430–R–93–006 B, U.S. Environmental Protection Agency, Washington, D.C.

    Google Scholar 

  • Hogan, K. B. (ed.): 1993b, Options for Reducing Methane Emissions InternationallyVolume I: Technological Options for Reducing Methane Emissions, EPA 430–R–93–006, U.S. Environmental Protection Agency, Washington, D.C.

    Google Scholar 

  • Hourcade, J.–C., Halsneas, K., Jaccard, M., Montgomery, W. D., Richels, R. G., Robinson, J., Shukla, P. R., and Sturm, P.: 1996b, ‘A Review of Mitigation Cost Studies’, in J. P. Bruce, H. Lee, and E. F. Haites (eds.), Climate Change 1995: Economic and Social DimensionsContribution of Working Group III to the Second Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, pp. 297–366.

    Google Scholar 

  • Hourcade, J.–C., Richels, R. G., Robinson, J., Chandler, W., Davidson, O., Finon, D., Grubb, M. J., Halsneas, K., Hogan, K., Jaccard, M., Krause, F., La Rovere, E., Montgomery, W. D., Nastari, P., Pegov, A., Richards, K., Schrattenholzer, L., Siniscalco, D., Shukla, P. R., Sokona, Y., Sturm P., and Tudini, A.: 1996a, ‘Estimating the Costs of Mitigating Greenhouse Gases’, in J.P. Bruce, H. Lee, and E. F. Haites (eds.), Climate Change 1995: Economic and Social DimensionsContribution of Working Group III to the Second Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, pp. 263–296

    Google Scholar 

  • Jensen, J. and Thelle, M. H.: 2001, What Are the Gains from a Multi–Gas Strategy?, Nota di Lavoro 84.2001, Fondazione Eni Enrico Mattei, Milan.

    Google Scholar 

  • Kandlikar, M.: 1995, ‘The Relative Role of Trace Gas Emissions in Greenhouse Abatement Policies’, Energy Policy 23 (10), 879–883.

    Google Scholar 

  • Kandlikar, M.: 1996, ‘Indices for Comparing Greenhouse Gas Emissions: Integrating Science and Economics’, Energy Economics 18, 265–281.

    Google Scholar 

  • Kattenberg, A., Giorgi, F., Grassl, H., Meehl, G. A., Mitchell, J. F. B., Stouffer, R. J., Tokioka, T., Weaver A. J., and Wigley T. M. L.: 1996, ‘Climate Models — Projections of Future Climate’, in J. T. Houghton, L. G. Meiro Filho, B. A. Callander, N. Harris, A. Kattenberg, and K. Maskell (eds.), Climate Change 1995: The Science of Climate ChangeContribution of Working Group I to the Second Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, pp. 285–357.

    Google Scholar 

  • Kemfert, C. and Tol, R. S. J.: 2002, ‘Equity, International Trade and Climate Policy’, International Environmental Agreements 2, 23–48.

    Google Scholar 

  • Kruger, D., Dastin–Van Rijn, M., Harvey, R., and Gibbs, M. J. (ed.): 1998, Costs of Reducing Methane Emissions in the United States, Environmental Policy Agency, Washington, D.C.

    Google Scholar 

  • Leggett, J., Pepper, W. J., and Swart, R. J.: 1992, ‘Emissions Scenarios for the IPCC: An Update’, in J. T. Houghton, B. A. Callander, and S. K. Varney (eds.), Climate Change 1992The Supplementary Report to the IPCC Scientific Assessment, Cambridge University Press, Cambridge, pp. 71–95.

    Google Scholar 

  • Lelieveld, J., Crutzen P. J., and Dentener, F. J.: 1998, ‘Changing Concentration, Lifetime and Climate Forcing of Atmospheric Methane’, Tellus 50B, 128–150.

    Google Scholar 

  • Maier–Reimer, E. and Hasselmann, K.: 1987, ‘Transport and Storage of Carbon Dioxide in the Ocean: An Inorganic Ocean Circulation Carbon Cycle Model’, Clim. Dyn. 2, 63–90.

    Google Scholar 

  • Manne, A. S. and Richels, R. G.: 1998, ‘On Stabilizing CO2 Concentrations — Cost–Effective Emission Reduction Strategies’, Environ. Model. Assess. 2, 251–265.

    Google Scholar 

  • Manne, A. S. and Richels, R. G.: 2001, ‘An Alternative Approach to Establishing Trade–offs among Greenhouse Gases’, Nature 410, 675–677.

    Google Scholar 

  • Michealis, P.: 1992, ‘GlobalWarming: Efficient Policies in the Case of Multiple Pollutants’, Environ. Resour. Econ. 2, 61–77.

    Google Scholar 

  • Pearce, D. W., Cline, W. R., Achanta, A. N., Fankhauser, S., Pachauri, R. K., Tol, R. S. J., and Vellinga, P.: 1996, ‘The Social Costs of Climate Change: Greenhouse Damage and the Benefits of Control’, in J. P. Bruce, H. Lee, and E. F. Haites (eds.), Climate Change 1995: Economic and Social DimensionsContribution of Working Group III to the Second Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, pp. 179–224.

    Google Scholar 

  • Prinn, R. G., Jacoby, H. D., and Sokolov, A. P. et al.: 1999, ‘Integrated Global System Model for Climate Policy Assessment: Feedbacks and Sensitivity Studies’, Clim. Change 3–4 (469), 546.

    Google Scholar 

  • Reilly, J., Prinn, R., Harnisch, J., Fitzmaurice, J., Jacoby, H., Kicklighter, D., Melillo, J., Stone, P., Sokolov, A., and Wang, C.: 1999, ‘Multi–Gas Assessment of the Kyoto Protocol’, Nature 401, 549–555.

    Google Scholar 

  • Reilly, J. M. and Richards, K. R.: 1993, ‘Climate Change Damage and the Trace Gas Index Issue’, Environ. Resour. Econ. 3, 41–61.

    Google Scholar 

  • Rose, A. and Stevens, B.: 1993, ‘The Efficiency and Equity of Marketable Permits for CO2 Emissions’, Resource and Energy Economics 15, 117–146.

    Google Scholar 

  • Schimel, D., Alves, D., Enting, I., Heimann, M., Joos, F., Raynaud, M., Derwent, R., Ehhalt, D., Fraser, P., Sanhueza, E., Zhou, X., Jonas, P., Charlson, R., Rodhe, H., Sadasivan, S., Shine, K. P., Fouquart, Y., Ramaswamy, V., Solomon, S., Srinivasan, J., Albritton, D. L., Isaksen, I., Lal M., and Wuebbles, D. J.: 1996, ‘Radiative Forcing of Climate Change’, in J. T. Houghton, L. G. Meiro Filho, B. A. Callander, N. Harris, A. Kattenberg, and K. Maskell (eds.), Climate Change 1995: The Science of Climate Change–Contribution of Working Group I to the Second Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge, pp. 65–131.

    Google Scholar 

  • Schmalensee, R.: 1993, ‘Comparing Greenhouse Gases for Policy Purposes’, Energy J. 14, 245–255.

    Google Scholar 

  • Schneider, S. H. and Goulder, L. H.: 1997, ‘Achieving Low–Cost Emissions Targets’, Nature 389, 13–14.

    Google Scholar 

  • Shine, K. P., Derwent, R. G., Wuebbles D. J., and Morcrette, J.–J.: 1990, ‘Radiative Forcing of Climate’, in J. T. Houghton, G. J. Jenkins and J. J. Ephraums (eds.), Climate Change–The IPCC Scientific Assessment, Cambridge University Press, Cambridge, pp. 41–68

    Google Scholar 

  • Smith, S. J. and Wigley, T. M. L.: 2000a, ‘Global Warming Potentials: 1. Climatic Implications of Emissions Reductions’, Clim. Change 44, 445–457.

    Google Scholar 

  • Smith, S. J. and Wigley, T. M. L.: 2000b, ‘Global Warming Potentials: 2. Accuracy’, Clim. Change 44, 459–469.

    Google Scholar 

  • Titus, J. G. and Narayanan, V.: 1996, ‘The Risk of Sea Level Rise’, Clim. Change 33 151–212.

    Google Scholar 

  • Tol, R. S. J.: 1995, ‘The Damage Costs of Climate Change — Towards More Comprehensive Calculations’, Environ. Resour. Econ. 5, 353–374.

    Google Scholar 

  • Tol, R. S. J.: 1996, ‘The Damage Costs of Climate Change: Towards a Dynamic Representation’, Ecological Economics 19, 67–90.

    Google Scholar 

  • Tol, R. S. J.: 1997, ‘On the Optimal Control of Carbon Dioxide Emissions–An Application of FUND’, Environ. Model. Assess. 2, 151–163.

    Google Scholar 

  • Tol, R. S. J.: 1998a, ‘On the Difference in Impact between Two Almost Identical Climate Scenarios’, Energy Policy 26 (1), 13–20.

    Google Scholar 

  • Tol, R. S. J.: 1998b, The Optimal Timing of Greenhouse Gas Emission Abatement, Individual Rationality and Intergenerational Equity, Nota di Lavoro 3.98, Fondazione Eni Enrico Mattei, Milan, 20 pp.

    Google Scholar 

  • Tol, R. S. J.: 1998c, ‘Short–Term Decisions under Long–Term Uncertainty’, Energy Economics 20, 557–569.

    Google Scholar 

  • Tol, R. S. J.: 1999a, ‘Time Discounting and Optimal Control of Climate Change: An Application of FUND’, Clim. Change 41 (3–4), 351–362.

    Google Scholar 

  • Tol, R. S. J.: 1999b, ‘Kyoto, Efficiency, and Cost–Effectiveness: Applications of FUND’, Energy Journal Special Issue on the Costs of the Kyoto Protocol: A Multi–Model Evaluation, 130–156.

  • Tol, R. S. J.: 1999c, ‘Spatial and Temporal Efficiency in Climate Policy: Applications of FUND’, Environ. Resour. Econ. 14 (1), 33–49.

    Google Scholar 

  • Tol, R. S. J.: 1999d, ‘Safe Policies in an Uncertain Climate: An Application of FUND’, Global Environ. Change, 9, 221–232.

    Google Scholar 

  • Tol, R. S. J.: 1999e, ‘The Marginal Costs of Greenhouse Gas Emissions’, Energy J. 20 (1), 61–81.

    Google Scholar 

  • Tol, R. S. J.: 2001a, ‘Climate Coalitions in an Integrated Assessment Model’, Computational Economics 18, 159–172.

    Google Scholar 

  • Tol, R. S. J.: 2001b, ‘Equitable Cost–Benefit Analysis of Climate Change’, Ecological Economics 36 (1), 71–85.

    Google Scholar 

  • Tol, R. S. J.: 2002a, ‘New Estimates of the Damage Costs of Climate Change, Part I: Benchmark Estimates’, Environ. Resour. Econ. 21 (1), 47–73.

    Google Scholar 

  • Tol, R. S. J.: 2002b, ‘;New Estimates of the Damage Costs of Climate Change, Part II: Dynamic Estimates’, Environ. Resour. Econ. 21(1), 135–160.

    Google Scholar 

  • Tol, R. S. J.: 2002c, ‘Welfare Specification and Optimal Control of Climate Change: An Application of FUND’, Energy Economics, 24 (4), 367–376.

    Google Scholar 

  • Tol, R. S. J.: 2003, ‘Is the Uncertainty about Climate Change Too Large for Expected Cost–Benefit Analysis?’, Clim. Change 56, 265–289.

    Google Scholar 

  • Tol, R. S. J., Downing, T. E., Fankhauser, S., Richels R. G., and Smith J. B.: 2001, ‘Progrès dans l'Estimation des Coûts des Dommages des Émissions des Gas à Effet de Serre’, Pollution Atmosphérique — Numéro Spécial: Combien Vaut l’Air Propre?, 155–179.

  • Tol, R. S. J., van der Burg, T., Jansen, H. M. A., and Verbruggen, H.: 1995, The Climate Fund — Some Notions on the Socio–Economic Impacts of Greenhouse Gas Emissions and Emission Reductions in an International Context, Institute for Environmental Studies R95/03, Vrije Universiteit, Amsterdam.

    Google Scholar 

  • United Nations: 1997, Kyoto Protocol to the United Nations Framework Convention on Climate Change, United Nations, Geneva.

    Google Scholar 

  • Van Amstel, A. R. (ed.): 1993, Methane and Nitrous Oxide — Methods in National Emissions Inventories and Options for Control, RIVM, Bilthoven.

    Google Scholar 

  • Van Ham, J., Baede, A. P. M., Meyer, L. A., and Ybema, R. (eds.): 2000, Non–CO 2 Greenhouse Gases: Scientific Understanding, Control and Implementation, Kluwer Academic Publishers, Dordrecht.

    Google Scholar 

  • Van Ham, J., Janssen, L. H. J. M., and Swart, R. J. (eds.): 1994, Non–CO 2 Greenhouse Gases: Why and How to Control? — Proceedings of an International Symposium, Maastricht, The Netherlands, 13–15 December 1993, Kluwer Academic Publishers, Dordrecht.

    Google Scholar 

  • Watson, R. T., Zinyowera, M. C., and Moss, R. H. (eds.): 1996, Climate Change 1995: Impacts, Adaptation, and Mitigation of Climate ChangeScientific–Technical AnalysisContribution of Working Group II to the Second Assessment Report of the Intergovernmental Panel on Climate Change, Cambridge University Press, Cambridge.

    Google Scholar 

  • Wigley, T. M. L.:1998, ‘The Kyoto Protocol: CO2, CH4 and Climate Implications’, Geophys. Res. Lett. 25 (13), 2285–2288.

    Google Scholar 

  • Wigley, T. M. L., Richels, R. G., and Edmonds, J. A.: 1996, ‘Economic and Environmental Choices in the Stabilization of Atmospheric CO2 Concentrations’, Nature 379, 240–243.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints and permissions

About this article

Cite this article

Tol, R.S.J., Heintz, R.J. & Lammers, P.E.M. Methane Emission Reduction: An Application of FUND . Climatic Change 57, 71–98 (2003). https://doi.org/10.1023/A:1022196517982

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/A:1022196517982

Keywords

Navigation