Abstract
The version of NEWAGE1; used for this study is an extension of an earlier static model designed to investigate the economic implications of alternative CO2 abatement strategies for the European Union (Böhringer, Ferris, Rutherford 1996). The new features include a hybrid specification of the production side, which provides the option to represent selected sectors by (linear or nonlinear) activity analysis with a choice among discrete technologies, while characterizing other production sectors by means of flexible neoclassical functional forms. The incorporation of activity analysis enhances the credibility of policy-induced technological adjustments, because substitution possibilities are based on real processes rather than abstract production functions (‘nebulous’ substitution elasticities).
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© 1997 Physica-Verlag Heidelberg
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Hoster, F., Welsch, H., Böhringer, C. (1997). NEWAGE. In: CO2 Abatement and Economic Structural Change in the European Internal Market. Contributions to Economics. Physica, Heidelberg. https://doi.org/10.1007/978-3-642-47005-9_4
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DOI: https://doi.org/10.1007/978-3-642-47005-9_4
Publisher Name: Physica, Heidelberg
Print ISBN: 978-3-7908-1020-2
Online ISBN: 978-3-642-47005-9
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