Modelling Complex Emissions Intensity Targets with a Simple Simulation Algorithm

CAMA Working Paper 33/2013

15 Pages Posted: 8 Jun 2013

See all articles by Yiyong Cai

Yiyong Cai

Government of the Commonwealth of Australia - CSIRO (Commonwealth Scientific and Industrial Research Organisation); Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA)

Yingying Lu

Australian National University

David Newth

Government of the Commonwealth of Australia - CSIRO (Commonwealth Scientific and Industrial Research Organisation)

Alison Stegman

Australian National University (ANU)

Date Written: June 2013

Abstract

Designing, modelling and analysing global emissions policies are becoming increasingly complex undertakings. Pressure on developing economies to make quantifiable emissions reduction commitments has led to the introduction of intensity based emissions targets, where reductions in emissions are specified with reference to some measure of output, generally gross domestic product. The Copenhagen commitments of China and India are two prominent examples. From a modelling perspective, intensity targets substantially increase the complexity of analysis, with respect to both theoretical design and computational implementation. Here, a clear and practically relevant theoretical design is used to present a new algorithm that can be applied to frameworks that model the complex interaction that occurs between emissions policy instruments, emissions levels and output effects under an emissions intensity target. The coding of the algorithm has been simplified to allow for easy integration into a range of modelling frameworks. Further development of the algorithm that allows for more complex theoretical design structures is possible.

Suggested Citation

Cai, Yiyong and Lu, Yingying and Newth, David and Stegman, Alison, Modelling Complex Emissions Intensity Targets with a Simple Simulation Algorithm (June 2013). CAMA Working Paper 33/2013, Available at SSRN: https://ssrn.com/abstract=2275708 or http://dx.doi.org/10.2139/ssrn.2275708

Yiyong Cai (Contact Author)

Government of the Commonwealth of Australia - CSIRO (Commonwealth Scientific and Industrial Research Organisation) ( email )

41 Boggo Rd
Dutton Park, Queensland
Australia

Australian National University (ANU) - Centre for Applied Macroeconomic Analysis (CAMA) ( email )

ANU College of Business and Economics
Canberra, Australian Capital Territory 0200
Australia

Yingying Lu

Australian National University ( email )

Canberra, Australian Capital Territory 2601
Australia

David Newth

Government of the Commonwealth of Australia - CSIRO (Commonwealth Scientific and Industrial Research Organisation) ( email )

41 Boggo Rd
Dutton Park, Queensland
Australia

Alison Stegman

Australian National University (ANU) ( email )

Canberra, Australian Capital Territory 2601
Australia

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