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CO2 Emission Limits: An Economic Cost Analysis for the USA

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  • Alan S. Manne
  • Richard G. Richels

Abstract

This paper provides a cost-benefit analysis of controlling or decreasing C02 emissions. It uses an analytical framework, called Global 2100, which is designed to evaluated C02 energy economy interactions and estimate the cost of a carbon emissions limit. It analyzes three demand parameters (potential GNP growth, elasticity of price induced substitution between capital-labour and energy, and the rate of autonomous energy efficiency improvements) which are crucial to the debate over energy and environmental futures. The paper discusses various energy sources which are either presently in use or will possibly be in use in the future, and analyzes their impact on cost-benefit analyses. Finally, the paper analyzes the results of carbon constraints and suggests that there is need for more research and development on the subject.

Suggested Citation

  • Alan S. Manne & Richard G. Richels, 1990. "CO2 Emission Limits: An Economic Cost Analysis for the USA," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 51-74.
    • Handle: RePEc:aen:journl:1990v11-02-a03
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    JEL classification:

    • F0 - International Economics - - General

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