How much climate policy has cost for OECD countries?

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How much climate policy has cost for OECD countries? / Kuosmanen, Timo; Zhou, Xun; Dai, Sheng.

In: WORLD DEVELOPMENT, Vol. 125, 2020.

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@article{4648cf663727470088dac717ef55f15b,
title = "How much climate policy has cost for OECD countries?",
abstract = "High economic cost of climate policy has attracted critical debate since the Kyoto Protocol. However, reliable empirical evidence of the abatement cost of green-house gases across countries remains scant. In this study we estimate the average yearly green-house gas abatement costs per capita for a panel of 28 OECD countries in years 1990–2015. The marginal abatement costs are estimated using a novel data-driven approach based on convex quantile regression. Compared to traditional frontier estimation methods, the quantile approach takes into account a broader set of abatement options and is more robust to inefficiency, noise, and heteroscedasticity in empirical data. The comparison of OECD countries shows that the actual abatement cost per capita has been very modest, much lower than predicted in the late 1990s. This result has profound policy implications, calling for more ambitious climate change mitigation strategy in the future.",
keywords = "Abatement cost, Climate change, Convex quantile regression, Green-house gases, Kyoto Protocol, OECD countries",
author = "Timo Kuosmanen and Xun Zhou and Sheng Dai",
year = "2020",
doi = "10.1016/j.worlddev.2019.104681",
language = "English",
volume = "125",
journal = "WORLD DEVELOPMENT",
issn = "0305-750X",
publisher = "Elsevier BV",

}

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TY - JOUR

T1 - How much climate policy has cost for OECD countries?

AU - Kuosmanen, Timo

AU - Zhou, Xun

AU - Dai, Sheng

PY - 2020

Y1 - 2020

N2 - High economic cost of climate policy has attracted critical debate since the Kyoto Protocol. However, reliable empirical evidence of the abatement cost of green-house gases across countries remains scant. In this study we estimate the average yearly green-house gas abatement costs per capita for a panel of 28 OECD countries in years 1990–2015. The marginal abatement costs are estimated using a novel data-driven approach based on convex quantile regression. Compared to traditional frontier estimation methods, the quantile approach takes into account a broader set of abatement options and is more robust to inefficiency, noise, and heteroscedasticity in empirical data. The comparison of OECD countries shows that the actual abatement cost per capita has been very modest, much lower than predicted in the late 1990s. This result has profound policy implications, calling for more ambitious climate change mitigation strategy in the future.

AB - High economic cost of climate policy has attracted critical debate since the Kyoto Protocol. However, reliable empirical evidence of the abatement cost of green-house gases across countries remains scant. In this study we estimate the average yearly green-house gas abatement costs per capita for a panel of 28 OECD countries in years 1990–2015. The marginal abatement costs are estimated using a novel data-driven approach based on convex quantile regression. Compared to traditional frontier estimation methods, the quantile approach takes into account a broader set of abatement options and is more robust to inefficiency, noise, and heteroscedasticity in empirical data. The comparison of OECD countries shows that the actual abatement cost per capita has been very modest, much lower than predicted in the late 1990s. This result has profound policy implications, calling for more ambitious climate change mitigation strategy in the future.

KW - Abatement cost

KW - Climate change

KW - Convex quantile regression

KW - Green-house gases

KW - Kyoto Protocol

KW - OECD countries

U2 - 10.1016/j.worlddev.2019.104681

DO - 10.1016/j.worlddev.2019.104681

M3 - Article

VL - 125

JO - WORLD DEVELOPMENT

JF - WORLD DEVELOPMENT

SN - 0305-750X

ER -

ID: 37072133