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Mitigation of Methane and Nitrous Oxide Emissions from Waste, Energy and Industry

Traditionally, economic analyses of greenhouse gas (GHG) mitigation focused on carbon dioxide (CO2) emissions from energy sources, while nonCO2 GHGs were not incorporated into the studies, due to the lack of data on abatement costs of non-CO2 GHGs. In recent years, however, increasing attention has been dedicated to the benefits of reducing emissions of non-CO2 GHGs such as methane and nitrous oxide. Increased attention to the potential role of these gases in a GHG reduction policy increased the need for better data on the costs of non-CO2 GHG abatement for countries and regions outside of the US and the European Union (EU). Using a net present value calculation, this analysis develops regionally adjusted costs per mitigation option and marginal abatement cost curves by region for use in economic models. The result is worldwide cost estimates for methane and nitrous oxide from waste, energy and the industrial sectors. This paper also demonstrates the ability to significantly reduce greenhouse gases from these sectors with current technologies and the low cost of methane and nitrous oxide relative to CO reductions.

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Energy Specializations: Energy Modeling – Other; Energy and the Environment – Air Emissions (other than greenhouse gases); Energy and the Environment – Policy and Regulation

JEL Codes:
C59 - Econometric Modeling: Other
Q52 - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects
E60 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General

Keywords: Greenhouse gases, CH4 and NOx abatement, Technical change

DOI: 10.5547/ISSN0195-6574-EJ-VolSI2006-NoSI3-3

Published in Multi-Greenhouse Gas Mitigation and Climate Policy, Special Issue #3 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.