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Defining the abatement cost in presence of learning-by-doing: Application to the fuel cell electric vehicle

Creti, Anna; Kotelnikova, Alena; Meunier, Guy; Ponssard, Jean-Pierre (2018), Defining the abatement cost in presence of learning-by-doing: Application to the fuel cell electric vehicle, Environmental and Resource Economics, 71, 3, p. 777-800. 10.1007/s10640-017-0183-y

Type
Article accepté pour publication ou publié
External document link
https://hal.archives-ouvertes.fr/hal-01158461
Date
2018
Journal name
Environmental and Resource Economics
Volume
71
Number
3
Publisher
Springer
Pages
777-800
Publication identifier
10.1007/s10640-017-0183-y
Metadata
Show full item record
Author(s)
Creti, Anna

Laboratoire d'Economie de Dauphine [LEDa]

Kotelnikova, Alena
Pole de recherche en économie et gestion [PREG-CRG]
Centre de Recherche en Économie et Statistique [CREST]
Meunier, Guy
Alimentation et sciences sociales [ALISS]
centre international de recherche sur l'environnement et le développement [CIRED]


Centre de Recherche en Économie et Statistique [CREST]
Ponssard, Jean-Pierre
Department of Economics, École Polytechnique, Palaiseau Cedex, 91128, France
Centre de Recherche en Économie et Statistique [CREST]
Abstract (EN)
We consider a partial equilibrium model to study the optimal phasing out of polluting goods by green goods. The unit production cost of the green goods involves convexity and learning-by-doing. The total cost for the social planner includes the private cost of production and the social cost of carbon, assumed to be exogenous and growing at the social discount rate. Under these assumptions the optimization problem can be decomposed in two questions: (i) when to launch a given schedule; (ii) at which rate the transition should be completed that is, the design of a transition schedule as such. The first question can be solved using a simple indicator interpreted as the MAC of the whole schedule, possibly non optimal. The case of hydrogen vehicle (Fuel Cell Electric Vehicles) offers an illustration of our results. Using data from the German market we show that the 2015–2050 trajectory foreseen by the industry would be consistent with a carbon price at 52€/t. The transition cost to achieve a 7.5 M car park in 2050 is estimated at 21.6 billion € that is, to JEl 4% discount rate, 115 € annually for each vehicle which would abate 2.18 tCO 2 per year.
Subjects / Keywords
Dynamic abatement costs; Learning by doing; Fuel cell electric vehicles
JEL
C61 - Optimization Techniques; Programming Models; Dynamic Analysis
Q55 - Technological Innovation
Q42 - Alternative Energy Sources

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