| dc.description.abstract | We analyse CO2 emissions reduction costs based on project data
from the Climate Cent Foundation (CCF), a climate policy instrument in
Switzerland. We draw four conclusions. First, for the projects investigated,
the CCF on average pays € 63/t. Due to the Kyoto Protocol, the CCF buys
reductions until 2012 only. This cutoff increases reported per ton reduction
costs, as the additional lifetime project costs are set in relation to reductions
until 2012 only, rather than to reductions realised over the whole lifetime.
Lifetime reduction costs are € 45/t. Second, correlation between CCF’s payments
and lifetime reduction costs per ton is low. Projects with low per ton
reduction costs should thus be identified based on lifetime per ton reduction
costs. Third, the wide range of project costs per ton observed casts doubts
on the widely used identification of the merit order of reduction measures
based on average per ton costs for technology types. Finally, the CCF covers
only a fraction of additional reduction costs. Decisions to take reduction
efforts thus depend on additional, non-observable and/or non-economic motives.
Any generalisation of results has to consider that this analysis is based
on prospective costs of a sub-sample of projects in Switzerland. | en |
