IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v41y2020i6p133-156.html
   My bibliography  Save this article

Energy R&D Investments and Emissions Abatement Policy

Author

Listed:
  • Di Yin
  • Youngho Chang

Abstract

The study examines the interactions of the energy R&D investments and the CO2 abatement policy using an endogenous energy R&D climate-economy model. Energy R&D investments affect the carbon emissions directly through efficiency improvements and indirectly by changing the comparative advantages of resources. This study considers the R&D investments in energy efficiency and low-carbon technology and explores how energy R&D investments accelerate the energy transition from fossil fuels to low-carbon technology. Three policies of carbon abatements are considered, namely, the optimal policy, the 2 ଌ policy, and the 1.5 ଌ policy. From the perspectives of benefits and costs, the optimal policy leads to the least abatement costs compared to the other two abatement policies. This study indicates that the more restrictive the abatement policy is, the more severe economic damage is caused in the short run, but more economic welfare is gained in the long run.

Suggested Citation

  • Di Yin & Youngho Chang, 2020. "Energy R&D Investments and Emissions Abatement Policy," The Energy Journal, , vol. 41(6), pages 133-156, November.
    • Handle: RePEc:sae:enejou:v:41:y:2020:i:6:p:133-156
    DOI: 10.5547/01956574.41.6.dyin
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.41.6.dyin
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.41.6.dyin?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter Hartley, Kenneth B. Medlock III, Ted Temzelides, Xinya Zhang, 2016. "Energy Sector Innovation and Growth: An Optimal Energy Crisis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1).
    2. Jaccard, Mark & Murphy, Rose & Rivers, Nic, 2004. "Energy-environment policy modeling of endogenous technological change with personal vehicles: combining top-down and bottom-up methods," Ecological Economics, Elsevier, vol. 51(1-2), pages 31-46, November.
    3. Kloess, Maximilian & Müller, Andreas, 2011. "Simulating the impact of policy, energy prices and technological progress on the passenger car fleet in Austria--A model based analysis 2010-2050," Energy Policy, Elsevier, vol. 39(9), pages 5045-5062, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adão, Bernardino & Narajabad, Borghan & Temzelides, Ted, 2024. "Renewable technology adoption costs and economic growth," Energy Economics, Elsevier, vol. 129(C).
    2. Barker, Terry & Ekins, Paul & Foxon, Tim, 2007. "Macroeconomic effects of efficiency policies for energy-intensive industries: The case of the UK Climate Change Agreements, 2000-2010," Energy Economics, Elsevier, vol. 29(4), pages 760-778, July.
    3. Garth Heutel & Erich Muehlegger, 2015. "Consumer Learning and Hybrid Vehicle Adoption," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(1), pages 125-161, September.
    4. Krause, Jette & Thiel, Christian & Tsokolis, Dimitrios & Samaras, Zissis & Rota, Christian & Ward, Andy & Prenninger, Peter & Coosemans, Thierry & Neugebauer, Stephan & Verhoeve, Wim, 2020. "EU road vehicle energy consumption and CO2 emissions by 2050 – Expert-based scenarios," Energy Policy, Elsevier, vol. 138(C).
    5. Shafiei, Ehsan & Davidsdottir, Brynhildur & Leaver, Jonathan & Stefansson, Hlynur & Asgeirsson, Eyjolfur Ingi, 2015. "Comparative analysis of hydrogen, biofuels and electricity transitional pathways to sustainable transport in a renewable-based energy system," Energy, Elsevier, vol. 83(C), pages 614-627.
    6. Aileen Lam, 2013. "Projections of future emissions and energy use from passenger cars as a result of policies in the EU with a dynamic model of technological change," 4CMR Working Paper Series 005, University of Cambridge, Department of Land Economy, Cambridge Centre for Climate Change Mitigation Research.
    7. Arne Höltl & Cathy Macharis & Klaas De Brucker, 2017. "Pathways to Decarbonise the European Car Fleet: A Scenario Analysis Using the Backcasting Approach," Energies, MDPI, vol. 11(1), pages 1-20, December.
    8. Lee, Hwarang & Lee, Jeongeun & Koo, Yoonmo, 2022. "Economic impacts of carbon capture and storage on the steel industry–A hybrid energy system model incorporating technological change," Applied Energy, Elsevier, vol. 317(C).
    9. Hou, Yaru & Yang, Mian & Ma, Yanran & Zhang, Haiying, 2024. "Study on city's energy transition: Evidence from the establishment of the new energy demonstration cities in China," Energy, Elsevier, vol. 292(C).
    10. Radu Lupu & Adrian Cantemir Călin & Cristina Georgiana Zeldea & Iulia Lupu, 2021. "Systemic Risk Spillovers in the European Energy Sector," Energies, MDPI, vol. 14(19), pages 1-23, October.
    11. Tesemma, Tewodros, 2023. "Encouraging adoption of fuel-efficient vehicles – A policy reform evaluation from Ethiopia," Working Papers in Economics 838, University of Gothenburg, Department of Economics.
    12. Lee, Jeongeun & Koo, Yoonmo, 2023. "A general equilibrium analysis of individual choice behavior on alternative fuel vehicles," Ecological Economics, Elsevier, vol. 204(PB).
    13. Lee, Yongseung & Kim, Chongman & Shin, Juneseuk, 2016. "A hybrid electric vehicle market penetration model to identify the best policy mix: A consumer ownership cycle approach," Applied Energy, Elsevier, vol. 184(C), pages 438-449.
    14. González Palencia, Juan C. & Otsuka, Yuki & Araki, Mikiya & Shiga, Seiichi, 2017. "Scenario analysis of lightweight and electric-drive vehicle market penetration in the long-term and impact on the light-duty vehicle fleet," Applied Energy, Elsevier, vol. 204(C), pages 1444-1462.
    15. Mohn, Klaus, 2016. "Undressing the emperor: A critical review of IEA’s WEO," UiS Working Papers in Economics and Finance 2016/6, University of Stavanger.
    16. Pietzcker, Robert C. & Longden, Thomas & Chen, Wenying & Fu, Sha & Kriegler, Elmar & Kyle, Page & Luderer, Gunnar, 2014. "Long-term transport energy demand and climate policy: Alternative visions on transport decarbonization in energy-economy models," Energy, Elsevier, vol. 64(C), pages 95-108.
    17. Jiménez, Juan Luis & Perdiguero, Jordi & García, Carmen, 2016. "Evaluation of subsidies programs to sell green cars: Impact on prices, quantities and efficiency," Transport Policy, Elsevier, vol. 47(C), pages 105-118.
    18. Mahdi Salehi & Seyed Hamed Fahimifard & Grzegorz Zimon & Andrzej Bujak & Adam Sadowski, 2022. "The Effect of CO 2 Gas Emissions on the Market Value, Price and Shares Returns," Energies, MDPI, vol. 15(23), pages 1-17, December.
    19. Shafiei, Ehsan & Davidsdottir, Brynhildur & Leaver, Jonathan & Stefansson, Hlynur & Asgeirsson, Eyjolfur Ingi & Keith, David R., 2016. "Analysis of supply-push strategies governing the transition to biofuel vehicles in a market-oriented renewable energy system," Energy, Elsevier, vol. 94(C), pages 409-421.
    20. Lee, Duk Hee & Park, Sang Yong & Hong, Jong Chul & Choi, Sang Jin & Kim, Jong Wook, 2013. "Analysis of the energy and environmental effects of green car deployment by an integrating energy system model with a forecasting model," Applied Energy, Elsevier, vol. 103(C), pages 306-316.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:enejou:v:41:y:2020:i:6:p:133-156. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.