Evaluating India's Climate Targets: The Implications of Economy-wide and Sector-Specific Policies
Name
s201000781950009x.pdf
Description
Published version
Size
994.26 KB
Format
Adobe PDF
Checksum (MD5)
c9ec01b1d7f4c284fb11b7b80143766c
Author(s)
Winchester, Niven
Karplus, Valerie Jean
Date Issued
July 2019
Journal
Climate Change Economics
Publisher
World Scientific Pub Co Pte Lt
Citation
Singh, Arun et al. “Evaluating India's Climate Targets: The Implications of Economy-wide and Sector-Specific Policies.” Climate Change Economics 10, 3 (July 2019): 1950009 © 2019 The Author(s)
Version
Final published version
Abstract
We employ a numerical economy-wide model of India with energy sector detail to evaluate the impact of achieving India's commitments to the Paris Climate Agreement. We simulate targets for reducing CO₂ emissions intensity of GDP via an economy-wide CO₂ price and for increasing non-fossil electricity capacity via a Renewable Portfolio Standard. We find that compared with the no policy scenario in 2030, the average cost per unit of emissions reduced is lowest under a CO₂ pricing regime. A pure RPS costs more than 10 times the cost of a CO₂ pricing regime. Projected electricity demand in 2030 decreases by 8% under the CO₂ price, while introducing an RPS further suppresses electricity demand. Importantly, a reduction in the costs of wind and solar power induced by favorable policies may result in cost convergence across instruments, paving the way for more aggressive decarbonization policies in the future.
MIT Department
Sloan School of Management
Massachusetts Institute of Technology. Joint Program on the Science & Policy of Global Change
Terms of Use
Creative Commons Attribution 4.0 International license
Persistent DSpace Link
DOI of Published Version
https://doi.org/10.1142/S201000781950009X
