Comparative Analysis of Greenhouse Gas Emissions Abatement Costs in Developed and Emerging Economies: Case of the EU Countries and Russia

Global climate change, caused by an increase in the concentration of greenhouse gases in the atmosphere, is one of the main modern challenges. The growth of GHG not only increases the likelihood of climate risks, but also has negative global effects on both the economy and society. The efforts of developed countries to reduce emissions have traditionally exceeded those of developing countries, which raises a number of questions about the effectiveness of the Paris Agreement approach based on "fair" NDC contributions. The asymmetry of climate regulation at the international level leads to a massive shift of production to countries with more loyal climate regulation, which allows companies to significantly reduce the costs of reducing emissions. However, such actions increase emissions from international trade and increase the likelihood of carbon leakage. Climate change is a global problem, and the unilateral actions of a number of countries not only do not lead to a global reduction in emissions, but also devalue the actions of the European Union in relation to decarbonization. The analysis carried out in the work reveals the reasons for the ineffectiveness of the current climate regulation in the EU. In this regard, there is a need to analyze how much the cost of reducing greenhouse gas emissions differs in developed and developing countries. The aim of the work is to determine the costs of reducing emissions in countries with different levels of development and, based on the results obtained, to propose mechanisms for balancing them.