Catching the green-tech train: technology and climate change mitigation
Published:
SUERF Policy Brief, No. 567
With Gilbert Cette, Valérie Chouard, Rémy Lecat
Abstract: Technology may significantly contribute to reaching the 2015 Paris Agreement goals of net zero carbon dioxide (CO2) emissions and global warming below 2°C in 2100. To test that, we use the Alestra et al. (2022) Advanced Climate Change Long-term Model (ACCL), particularly adapted to quantify the consequences of energy price and technology shocks. We assess a multi-lever climate strategy combining energy efficiency gains, carbon sequestration, and a decrease in the relative price of “clean” electricity with a rise in the relative price of polluting energy sources. None of these components alone is sufficient to reach climate objectives, but our composite scenario achieves the climate goals.