The Role of Non-CO2 Gases in Flexible Climate Policy: An Analysis with the Energy-Systems GMM Model

This paper examines the effects of incorporating two main non-CO2 greenhouse gases, namely methane (CH4) and nitrous oxide (N2O) into the "bottom-up", partial equilibrium, energy-systems Global Multi-regional MARKAL model (GMM). Abatement possibilities for these two greenhouse gases have been included using marginal abatement curves from the U.S. EPA study (2003). Our results illustrate the effect of these greenhouse gases on the composition of emissions mitigation strategies and associated costs, highlighting the importance of the "what" flexibility in climate-change policies. In addition, we emphasize the influence of assumptions regarding rate of deployment and technological change in non-CO2 abatement potentials on the model's outcome.