Swedish Energy Agency funds research at Indek with 2.2 million Swedish kronor
The project “Investments in energy efficiency and climate change abatement: revising marginal cost curves as a optimization model” has been granted 2 193 472 SEK by the Swedish Energy Agency for a period of two years.
The project finances fully during the project. and project leader is financed 10% each during the project.
One common tool for analysing the effect of economic policy, or to prioritise between options for achieving a goal of climate change abatement, energy efficiency and energy conservation is the Marginal Abatement Cost Curve (MACC). Empirical research on this model is sparse, however, and our hypothesis is that there are serious flaws in the model. The proposed project aims to bring some of these problems into light and to develop the model further. This is important both in a corporate and a governmental context. MACC is today widely spread both within Swedish agencies, at European Union level, as well as within corporations. Thus the need for the project is eminent to counter the flaws of the MACC-model.