Defining the Abatement Cost in Presence of Learning-by-Doing: Application to the Fuel Cell Electric Vehicle

23 Pages Posted: 11 Dec 2015

See all articles by Anna Creti

Anna Creti

Université Paris Ouest - Nanterre, La Défense - EconomiX; Ecole Polytechnique, Paris - Laboratoire d'Econometrie

Alena Kotelnikova

Ecole Polytechnique, Palaiseau

Guy Meunier

INRA - UR1303 ALISS

Jean Pierre Ponssard

Ecole Polytechnique, Paris - Laboratoire d'Econometrie

Date Written: November 16, 2015

Abstract

The transition of a sector from a pollutant state to a clean one is studied. A green technology, subject to learning-by-doing, progressively replaces an old one. The notion of abatement cost in this dynamic context is fully characterized. The theoretical, dynamic optimization, perspective is linked to simple implementation rules. The practical “deployment” perspective allows to study sub-optimal trajectories. Moreover, the analysis of the launching date provides a definition of a dynamic abatement cost easy to use for evaluation of real-world policy options. The case of Fuel Cell Electric Vehicles offers an illustration of the proposed methodology.

Keywords: dynamic abatement costs, learning by doing, fuel cell electric vehicles

JEL Classification: Q550, Q420, C610

Suggested Citation

Creti, Anna and Kotelnikova, Alena and Meunier, Guy and Ponssard, Jean Pierre, Defining the Abatement Cost in Presence of Learning-by-Doing: Application to the Fuel Cell Electric Vehicle (November 16, 2015). CESifo Working Paper Series No. 5596. Available at SSRN: https://ssrn.com/abstract=2701748

Anna Creti

Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

200 Avenue de la République
Nanterre cedex, Nanterre Cedex 92000
France

Ecole Polytechnique, Paris - Laboratoire d'Econometrie ( email )

1 rue Descartes
Paris, 75005
France

Alena Kotelnikova

Ecole Polytechnique, Palaiseau ( email )

Route de Saclay
Palaiseau, 91128
France

Guy Meunier

INRA - UR1303 ALISS ( email )

65 Boulevard Brandenburg
Ivry-sur-Seine Cedex, 94205
France

Jean Pierre Ponssard (Contact Author)

Ecole Polytechnique, Paris - Laboratoire d'Econometrie ( email )

1 rue Descartes
Paris, 75005
France

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