October 10, 2010

The Optimal Portfolio of Emissions Abatement and Low-Carbon R&D Depends on the Expected Availability of Negative Emission Technologies

by Derek M. Lemoine, Sabine Fuss, Jana Szolgayova, Michael Obersteiner and Daniel M. Kammen

- Combining policies to remove carbon dioxide (CO2) from the atmosphere with policies to reduce emissions can potentially decrease CO2 concentrations to earlier levels. We model the optimal selection of a dynamic portfolio of abatement, research and development (R&D), and negative emission policies under an exogenous CO2 constraint and with stochastic technological change. We find that near-term abatement is not sensitive to the availability of R&D policies, but the anticipated availability of negative emission strategies can reduce near-term abatement if CO2 targets are sufficiently ambitious.

Lemoine, D.M., S. Fuss, J. Szolgayova, M. Obersteiner, and D.M. Kammen (2010). "The Optimal Portfolio of Emissions Abatement and Low-Carbon R&D Depends on the Expected Availability of Negative Emission Technologies." Available at SSRN, Sept 2010.