The estimation of the costs of reducing carbon emissions is an important element for evaluating the economic potential for reductions, for assessing the impacts of climate policies, and also for determining the risks of leakage. This is the first time that this exercise has been carried out for Spain, although only for some selected sectors: cement, steel, and the electricity sector. In spite of the limited scope, results already provide interesting insights: a significant reduction of CO2 emissions may be achieved in the electricity and cement sectors at the expected carbon prices, whereas the steel sector is much less elastic. However, in the cement sector this can only be achieved through imports, therefore creating conditions for leakage.
Keywords: marginal abatement costs, carbon emissions, Spain
4th Atlantic Workshop on Energy and Environmental Economics. A Toxa (España). 8-9 Julio 2010
Published: July 2010.