Assess economic and market potential of technologies and initiatives

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Stage 3

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3b.2 Assess economic and market potential of technologies and initiatives
3b.2.1. Clean Energy Technologies

 
Key Product

  • Economic and market feasibility assessments, including marginal abatement cost curves

Market analysis involves assessing the economic potential of technology options identified as technically promising in the previous step.

Clean Energy Market Analysis Toolkit

One example of an economic assessment tool for a particular technology is the System Advisor Model (SAM), formerly the Solar Advisor Model.

Once the economic potential of a technology is understood it is also important to assess the general market environment related to that technology e.g., domestic demand, financing, number of manufacturers, export and import market, etc. The previous public and private sector capacity analysis should be used to frame technology specific market analyses.

3b.2.2. Land Use Initiatives

Stakeholders in this stage can use analyses of biophysical and economic mitigation potential to establish short and long-term goals. Stakeholders will want to consider the biophysical potential of the landscape to mitigate emissions and the economic costs and benefits to shift to activities with low emission or emission removals, including the market potential for goods produced using different agricultural and timber practices, opportunities to link into carbon markets, and capacity constraints in the public and private sectors. For more information on land use initiatives, see the Land Use Assessment Toolkit featured in 3b.1.

3b.2.3. Cost Curves

Once market analyses have been performed for technologies and land use initiatives, a marginal abatement cost curve can be used to model the GHG emission mitigation potentials and abatement costs of various options. A number of MACs have been developed (some are presented in the following table) and these analyses can be useful in providing background information on potential options to be considered in developing low emissions development scenarios.

3b.2.4. Table: Marginal Abatement Cost Curves
Tool Data Needs and Sources Outputs Example Products
Marginal Abatement Supply Curves Technology Cost and Performance Data Toolkit, GHG emission data- IPCC Data Distribution Centre, WRI-Earth Trends Data Mitigation technologies and abatement costs Mexico-McKinsey GHG Abatement Cost Curve see figure 1, ECN GHG Marginal Abatement Cost curves (NAMAC)
3b.2.5. FAQs and Resources

 
Questions

What are some good examples of market analyses and data needed to perform this type of analysis?

What tools are available to support market analysis of clean energy technologies?

What market analyses are available to support emission reductions in the land-use sector?

What tools can help me evaluate GHG reduction opportunities related to sustainable forestry in my country?

What resources can help me integrate agricultural planning when developing a strategy?