| ID | 098588 |
| Title Proper | Revisiting the case for intensity targets |
| Other Title Information | better incentives and less uncertainty for developing countries |
| Language | ENG |
| Author | Marschinski, Robert ; Edenhofer, Ottmar |
| Publication | 2010. |
| Summary / Abstract (Note) | In the debate on post-Kyoto global climate policy, intensity targets, which set a maximum amount of emissions per GDP, figure as prominent alternative to Kyoto-style absolute emission targets, especially for developing countries. This paper re-examines the case for intensity targets by critically assessing several of its properties, namely (i) reduction of cost-uncertainty, (ii) reduction of 'hot air', (iii) compatibility with international emissions trading, (iv) incentive to decouple carbon emissions and economic output (decarbonization), and, (v) use as a substitute for banking/borrowing. Relying on simple analytical models, it is shown that the effect on cost-uncertainty is ambiguous and depends on parameter values, and that the same holds for the risk of 'hot air'; that the intensity target distorts international emissions trading; that despite potential asymmetries in the choice of abatement technology between absolute and intensity target, the incentive for a lasting transformation of the energy system is not necessarily stronger under the latter; and, finally, that only a well-working intensity target could substitute banking/borrowing to some extent-but also vice versa. Overall, the results suggest that due to the increased complexity and the potentially only modest benefits of an intensity target, absolute targets remain a robust choice for a cautious policy maker. |
| `In' analytical Note | Energy Policy Vol. 38, No. 9; Sep 2010: p.5048-5058 |
| Journal Source | Energy Policy Vol. 38, No. 9; Sep 2010: p.5048-5058 |
| Key Words | Intensity Target ; Post - Kyoto ; Climate Policy |