Although the economic effects of CO2 abatement depend substantially on the degree to which capital and labor can substitute for energy, the issue of energy-capital-labor substitution is surrounded by considerable uncertainty. In this paper we use econometrically estimated, sectorally...

Within this paper, we analyse the fulfilment of the Kyoto-emissions reduction com-mitment exemplary in Germany and its implication on long-term paths of all macro-variables. Germany, like all other industrial or Annex B coun-tries, has to reduce its emissions by 2010 and after what we call a...