Keywords: carbon dioxide emissions, CO2 emissions, computable general equilibrium, energy, hybrid approach, input-, output model, macroeconomic modelling, optimisation, cost estimates, greenhouse gases, GHG emissions
Economic approaches to cost estimates for limiting emissions of carbon dioxide
Without going into much detail, this paper gives an assessment of the relative strengths and weaknesses of a variety of economic approaches commonly used for cost estimates for limiting CO2 emissions, including the ad hoc approach, the dynamic optimisation approach, the input-output approach, the macroeconomic approach, the computable general equilibrium approach, and the hybrid approach. It illustrates how these different approaches are able to shed light on different aspects of the control of CO2 emissions. Moreover, some conclusions with respect to the usefulness of each approach are drawn.