How to determine bottom-up model-derived marginal CO abatement cost curves with high temporal, sectoral, and techno-economic resolution?

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Marginal CO2 abatement cost curves derived from bottom-up or top-down models are widely used by policymakers to determine the least-cost sequential order of decarbonization measures and the most effective decarbonization strategies. However, most model-based methods lack high temporal, sectoral, and techno-economic resolution. To address these limitations, this paper presents a linear optimization method with an hourly resolution for a sector-coupled power system to derive step-wise CO2 abatement cost curves. A step-wise marginal CO2 abatement cost curve is calculated based on hundreds of hourly dispatch model runs, giving a high level of detail on techno-economic, inter-temporal, and inter-sectoral interactions. Results demonstrate a dynamic relationship between technology-specific CO2 abatement costs, CO2 emission reductions, and total system cost development per installed decarbonization measure. Moreover, the results indicate how competing flexibility and decarbonization options interact and how least-cost decarbonization pathways can be reached.


Original languageEnglish
Title of host publication2022 18th International Conference on the European Energy Market (EEM)
PublisherIEEE Xplore
ISBN (electronic)978-1-6654-0897-4
ISBN (print)978-1-6654-0896-7
Publication statusPublished - 2022

Publication series

SeriesInternational Conference on the European Energy Market, EEM


Title18th International Conference on the European Energy Market
Abbreviated titleEEM 2022
Conference number18
Duration13 - 15 September 2022

External IDs

ORCID /0000-0002-9416-6786/work/141544872
ORCID /0000-0001-7170-3596/work/142241639
ORCID /0000-0003-2005-4316/work/142241850



  • decarbonization measure, flexibility option, linear optimization, marginal abatement cost curve, sector-coupling