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Emission trading and the role of learning-by-doing spillovers in the "bottom-up" energy-system ERIS model

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  • Leonardo Barreto
  • Ger Klaassen

Abstract

In this paper, using the "bottom-up" energy-system optimisation ERIS model, we examine the effects of emission trading on technology deployment, emphasising the role of technology learning spillovers. That is, the possibility that the learning accumulated in a particular technology in a given region may spill to other regions as well, leading to cost reductions there also. The effects of different configurations of interregional spillovers of learning in ERIS and the impact of the emission trading mechanism under those different circumstances are analysed. Including spatial spillovers of learning allows capturing the possibility that the imposition of greenhouse gas emission constraints in a given region may induce technological change in other regions, such as developing countries, even if the latter regions do not face emission constraints. Our stylised results point out the potential benefits of sound international cooperation between industrialised and developing regions on research, development, demonstration and deployment (RD3) of clean energy technologies and on the implementation of emission trading schemes.

Suggested Citation

  • Leonardo Barreto & Ger Klaassen, 2004. "Emission trading and the role of learning-by-doing spillovers in the "bottom-up" energy-system ERIS model," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 2(1/2), pages 70-95.
    • Handle: RePEc:ids:ijetpo:v:2:y:2004:i:1/2:p:70-95
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    Cited by:

    1. Raihan, Selim, 2010. "Implications of the Global Economic Crisis for the Bangladesh Economy," Conference papers 331959, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Duan, Hongbo & Mo, Jianlei & Fan, Ying & Wang, Shouyang, 2018. "Achieving China's energy and climate policy targets in 2030 under multiple uncertainties," Energy Economics, Elsevier, vol. 70(C), pages 45-60.

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