In 2007 the US Congress began considering a set of bills to implement a cap-and-trade system to limit the nation's greenhouse gas (GHG) emissions. The MIT Integrated Global System Model (IGSM)-and its economic component, the Emissions Prediction and Policy Analysis (EPPA) model-were used to...

Major cost concepts used for evaluation of carbon policy are considered, including change in GDP, change in consumption, change in welfare, energy system cost, and area under marginal abatement cost (MAC) curve. The issues associated with the use of these concepts are discussed. We use the...

This paper examines how changes in an international climate regime would affect the European decarbonization strategy and costs through the mechanisms of trade, technology, and innovation. We present the results from the Energy Modeling Forum (EMF) model comparison study on European climate...

We develop a forward-looking version of the recursive dynamic MIT Emissions Prediction and Policy Analysis (EPPA) model, and apply it to examine the economic implications of proposals in the US Congress to limit greenhouse gas (GHG) emissions. We find that shocks in the consumption path are...

In the recent United Nations Framework Convention on Climate Change (UNFCCC) negotiations, sectoral trading was proposed to encourage early action and spur investment in low carbon technologies in developing countries. This mechanism involves including a sector from one or more nations in an...