Climate Change 2001:
Working Group III: Mitigation
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9. Sector Costs and Ancillary Benefits of Mitigation


Executive Summary

9.1 Introduction and Progress since the Second Assessment Report

9.2 Economic, Social, and Environmental Impacts of Policies and Measures on Prices, Economic Output, Employment, Competitiveness, and Trade Relations at the Sector and Sub-sector Levels

9.2.1 Impacts from Multisectoral Studies Effects of Carbon Taxes and Auctioned Emission Permits Reducing Subsidies in the Energy Sector Sectoral Impacts of the Kyoto Mechanisms

9.2.2 Coal Costs for the Coal Sector of Mitigation Options Ancillary benefits for Coal Production and Use of Mitigation Options

9.2.3 Petroleum and Natural Gas Petroleum The US Oil Market Natural Gas Ancillary Benefits of GHG Mitigation in the Oil and Gas Industry

9.2.4 Non-fossil Energy Electricity Use and Production Fuel Mix Impacts of Mitigation on the Electricity Sector Ancillary Benefits Associated with Mitigation in the Electricity Industry Ancillary Costs Associated with Mitigation in the Electricity Industry

9.2.5 Agriculture and Forestry Ancillary Benefits for Agriculture from Reduced Air Pollution Ancillary Benefits from Carbon Sequestration

9.2.6 Manufacturing Effects on Manufacturing from Multisectoral Top-down Studies Mitigation and Manufacturing Employment Mitigation Measures and Technology Strategy

9.2.7 Construction
9.2.8 Transport Aviation Passenger Cars Freight Trucks, Rail, and Shipping Co-benefits from Reduced Road Traffic Air Pollution Associated with Road Traffic Road Congestion Road Traffic Crashes

9.2.9 Services
9.2.10 Households Distributional Effects of Mitigation Electricity and Demand-side Management Effects of Improvement in Energy Efficiency Ancillary Benefits for Households The Asia Least-cost Greenhouse Gas Abatement Strategy Studies

9.3 International Spillovers from Mitigation Strategies

9.3.1 Technology Policies
9.3.2 Tax and Subsidy Policies

9.4 Why Studies Differ

9.4.1 The Influence of Methods Top-down and Bottom-up Modelling General Equilibrium and Time-series Econometric Modelling

9.4.2 The Role of Assumptions Baseline Costs and Availability of Technology Endogenous Technological Change Price Elasticity Degree of Aggregation Treatment of Returns to Scale Treatment of Environmental Damages Recycling of Tax Revenues International Environmental Policy

9.5 Areas for Further Research



Co-ordinating Lead Authors:
Terry Barker (UK), Leena Srivastava (India)

Lead Authors:
Majid Al-Moneef (Saudi-Arabia), Lenny Bernstein (USA), Patrick Criqui (France), Devra Davis (USA), Stephen Lennon (South Africa), Junfeng Li (China), Julio Torres Martinez (Cuba), Shunsuke Mori (Japan)

Contributing Authors:
Lee Ann Kozak (USA), Denise Mauzerall (USA), Gina Roos (South Africa), William Rhodes (USA), Sudhir Sharma (India), Sharmila B. Srikanth (India), Clive Turner (South Africa), Marcelo Villena (Chile)

Review Editor:
Tomihiro Taniguchi (Japan)

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