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Country- or region-specific models are essential for an appropriate estimation of costs of carbonabatement.
Before considering the agricultural feedback, poor rural households experience welfare losses even at low levels of carbonabatement.
The expansion to include all types of costs would most likely reduce the costs of carbonabatement in the economy.
An integrated model would enable a better estimation of costs of policy options for carbonabatement.
Including non-carbon commercial energy and further disaggregation in the non-energy sectors will increase the substitution possibilities and work towards reducing the costs of carbonabatement.
The main reason for the difference in costs of carbonabatement is the price elasticity for carbon energy demand.
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