Energy Substitution and Carbon Abatement Cost

Numerous studies on the costs of CO₂ emissions abatement have been abundant in recent years. Calculating the costs of reducing carbon emissions is extremely important, and exceedingly difficult. This paper focuses on the CO₂ abatement costs of three policies, which detailed are: (1) control the total coal consumption (2) The use of oil to replace coal (3) the use of nuclear energy to substitute coal. The results illustrated by the model show that improved efficiency of coal is the lowest-cost emission reduction method.