Methods and Models for Costing Carbon Mitigation

Using the results of more than 20 different global models with a particular emphasis on two rapidly growing large countries (China and India), this paper discusses the cost estimation methods that are used in setting up information for organizing models and to illustrate their global applicability to China, Korea, Japan, India, Indonesia, Europe, Latin America, the Middle East, Africa, and the United States. Some clear points emerge from the intermodal comparison exercise. First, no single technology can play a leading role in global emission mitigation. Second, although participation of all the regions is important, regions where future demographic and economic growth is concentrated will share a large part of this burden. Third, different technologies are important for different regions for mitigating emissions in the most cost-effective way. Fourth, if stringent climate policy targets are to be met, then emission-reduction actions need to be undertaken as soon as possible.