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This study examines the mechanisms of social cost of carbon (SCC) and marginal abatement cost (MAC) in climate change modeling. To examine this mechanisms, we observed the shifts in the marginal benefit (MB) and marginal cost (MC) curves of carbon dioxide (CO2) abatement when parameter values...
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...The optimal carbon tax reduces emissions from burning fossil fuel, both in the short and medium run. Furthermore, it brings forward the date that renewables take over from fossil fuel and encourages the market to keep more fossil fuel locked up. A renewables subsidy induces faster fossil fuel...
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